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City Council Packet 06-27-2023 Special
City Council 1 of 1 June 27, 2023 CITY OF PLYMOUTH AGENDA Special City Council June 27, 2023, 5:00 PM 1.CALL TO ORDER 2.TOPICS 2.1 2024/2025 Biennial Budget preview and discussion 2024-2025 Biennial Budget Workshop 06-27-2023 2.2 Discuss amendments to the accessory dwelling unit (ADU) code requirements Draft Ordinance Comparable Cities Regulations Family Housing Fund Memo Family Housing Fund Regulation Chart Resident Comment 2.3 Set future study sessions July August September 3.ADJOURN 1 Special City Council June 27, 2023 Agenda Number:2.1 To:Dave Callister, City Manager Prepared by:Dalton Larson, Interim Finance Manager Reviewed by:Maria Solano, Deputy City Manager Item:2024/2025 Biennial Budget preview and discussion 1.Action Requested: Staff will provide a preview of the 2024/2025 Budget. 2.Background: The purpose of the study session is to kick-off the 2024/2025 Biennial Budget process and to identify City Council financial goals and priorities. Input from the council will be used by the City Manager and departments as the detailed budget is developed. During the meeting, department directors will provide brief comments about what they are anticipating for 2024/2025. Departments are currently working on their budgets which will be included in the first draft of the budget that council will receive in August. 3.Budget Impact: N/A 4.Attachments: 2024-2025 Biennial Budget Workshop 06-27-2023 2 2024/2025 BIENNIAL BUDGET DISCUSSION June 27, 2023 3 Agenda •Budget Timeline •Budget Overview •2024/2025 Budget Process •Budget Goals •Department Presentations 4 Major Budget Milestones •On or before August 1st: The Department of Revenue notifies cities of state aid amounts. •Plymouth does not receive state aid •On or before September 30th: Cities must adopt their proposed budget and certify their proposed levy to the county auditor. •Once cities certify a proposed levy in September, they may decrease the amount when they certify a final levy in December—but may not increase it •On or before December 28th: Cities must adopt a final tax levy and certify that final property tax levy to the county auditor. •If this deadline is missed, the final levy will stay the same as it was in the previous year. 5 Timeline and Process 2024/25 BIENNIAL BUDGET TIMELINE 2024/25 Departments prepare budgets June Meeting # 1 - Council Study Session - Budget Goals 6/27/2023 Departmental budgets submitted to Finance 6/30/2023 Department budget internal review meetings July Council regular session (Financial Overview) & Audit presentation 7/25/2023 Meeting # 2 - Council Study Session - Levy Impacted Funds & related CIP (General & Special Revenue)8/22/2023 Meeting # 3 - Council Study Session - Levy Impacted Funds & related CIP (General & Special Revenue)9/12/2023 Meeting # 4 - Council adopts preliminary levies & budget 9/26/2023 Meeting # 5 - Council Study Session Enterprise Funds Budget with Utility Study and related CIP 10/24/2023 Meeting # 6 - Council Study Session Internal Service Funds Budget Review and related CIP 11/14/2023 Meeting # 7 - Council Study Session (if needed)11/28/2023 Planning Commission public hearing 12/6/2023 Budget Public Hearing - CIP, Budget, Levy, & Utility Rates Adoption 12/12/2023 Levy is certified with Hennepin County 12/28/2023 6 Financial Structure Plymouth Consolidated Budget Governmental Funds Proprietary Funds General Fund Special Revenue Debt Service Construction Enterprise Transit HRA Internal Service Utilities Plymouth Ice Center Fieldhouse Solid Waste Resource Planning Public Facilities Central Equipment Water Sewer Water Resources Recreation IT Risk Mgmt 7 General Fund Departments: •City Administration •Administrative Services •Community and Economic Development •Parks & Recreation •Police •Emergency Management •Fire •Public Works The general fund contains the operating budget for the City and is the primary driver of the annual property tax levy. The main revenue source for the fund is property taxes. 8 General Fund Revenue General Fund Expenditures Property Taxes 75.7% Permits & Licenses 7.2% Intergovernmental 6.5% Charges for Service 4.6% Billings to Departments Fines & Forfeitures 0.8% Interest Income 0.5%Transfers 0.3% Other 0.2% Personal Services 64.4%Allocations 16.4% Contractual Services 11.8% Materials & Supplies 2.6% Other 2.3% Employee Development & Meetings 1.0% Dues & Subscriptions 0.6% Transfers 0.4% Equipment 0.3% Capital Improvements 0.1% 9 Data and Studies Financial Plan & Proposed 2024/2025 Biennial Budget & CIPLabor Agreements Fleet, Facilities, IT, and Risk Management ISF Analysis Utility Rate Studies Debt Studies Compensation Study 10 11 12 13 What to expect for 2024/2025 budget cycle •True Biennial Budget process •Operating budget built in odd years (example – built in 2023 for 2024/25) •Capital budget built in even years (example – built in 2024 for 2025-2035) •This year will be focused on the operating budget with only impactful capital changes, but not bottom-up build of capital plan until 2024 •Continue high level review of budgets – staff to provide department budget summaries with bridge detailing changes from prior budget year to new budget years. Electronic budget binders will be provided. •Final online budget book with new ClearGovbudgeting tool 14 Click to edit Master title style2024/2025 Budget Goals •Continue to provide high quality services to all existing residents and businesses •Utilize tax base from new growth to provide the same level of high-quality city services to new areas of the city •Be sensitive to property tax increases and their impact on taxpayers •Address identified operational and capital needs for all departments •To the extent possible, address capital and equipment needs now by not deferring replacement to future years •Utilize annual budget surpluses for onetime capital needs thus reducing future fiscal obligations •Utilize the 10-year financial plan to insure we are setting the course for long term financial stability •Support the City Council’s strategic themes 15 2024/2025 Budget Assumptions & Drivers Support Council Strategic Themes Market Values Legislative Requirements/Funding Inflationary Costs Personnel and Compensation changes Allocations Department Pressures 16 Click to edit Master title styleCouncil Strategic Themes 17 Assumptions & Drivers: Market Value Single Family Homes +5.6%Residential Condos +3.6% Commercial +5.8%Townhouses +3.2% Industrial +22.2%Double Bungalow +0.8% Apartment +0.5%Residential Zero Lot Line +1.2% City of Plymouth - 2023 Assessment Total market value:17,858,352,200$ New Contruction:163,601,700$ Net present increase for all property types:6.50% Gross percent increase: 7.50% 18 Assumptions & Drivers: Legislative •Legislative •Chankahda Trail - $6.2M through bonding bill + $800k through cash bill •Public Safety Aid provision - $3.5M Police/Fire •Housing Aid - $770k •THC & Adult Use Cannabis – sales tax revenue •Public Safety Duty Disability Act •Earned Sick & Safe Time •Elections •Other 19 Assumptions & Drivers: Inflation Year-over-Year Inflation 2022 2023 All Items 9%3% Energy 33%-6% Gasoline 44%-15% Electricity 15%5% Natural Gas 31%2% Vehicles 10%7% 20 Assumptions & Drivers: Allocations Fleet •Fire truck inflation and supply issues – 38% increase in past two years, 2 year build time •Right sizing allocation to cover operations and reserve – phase over next four years •Assumes 3% inflation Facilities •Right sizing allocation to cover operations and reserve – phase over next four years •Assumes 3% inflation IT •Assumes 3 % inflation Risk Mgmt •Driven by number of employees, adjusted to reflect actual costs/claims 21 Assumptions & Drivers:Personnel The 2024/2025 budget will include personnel changes including new positions and implementation of the City’s compensation study. Preliminary personnel changes are as follows: FTE increases (requests for new staff currently being reviewed) COLAs and market adjustments as needed to maintain competitive wages based on compensation study 2024 health insurance rates 0% increase, 2025 rates capped at a 9% increase Dental insurance, life and disability programs are being reviewed 22 Department Overviews & Pressures •Parks & Recreation – Jennifer Tomlinson •Public Safety – Police & Fire – Erik Fadden •Public Works – Michael Thompson •Administration & Administrative Services – Maria Solano •Human Resources –Ali Timpone •Community & Economic Development – Grant Fernelius 23 Parks & Recreation – Jennifer Tomlinson 24 Director: Jennifer Tomlinson 56.5 employees responsible for providing quality programming, recreation facilities, volunteer opportunities and parks to the community Plymouth Community Center Plymouth Ice Center Recreation Parks Volunteer Services 25 Parks and Recreation FY 24 Goals •Destination Marketing Organization year one implementation •Construction of the Meadows including the city’s first cricket pitch •Construction of Schmidt Woods with the city’s first maple syruping educational opportunities •Reopen the Plymouth Town Hall by the summer of 2024 26 Public Safety – Erik Fadden 27 Public Safety Department Overview Priorities •Personnel •Fleet and Facilities •Projects •Training Public Safety Aid •Make up inflationary costs of budgeted purchases •Focus on staff wellness, mental and physical health •Projects – RMS, Crisis Communications •Training Opportunities 28 Public Works – Michael Thompson 29 Public Works - Overview •9 Divisional Budgets: •General Fund: Street Maintenance & Engineering •Enterprise Funds: Water, Sewer, Water Resources, & Solid Waste •Internal Service Funds:Facilities & Central Equipment (Fleet) •Special Revenue Fund:Transit •3 Additional Funds •Street Reconstruction •Municipal State Aid •Trunk Utility 30 Public Works – Goals & Objectives •Updates to the Facility and Central Services Allocations •Increased costs to ensure proper maintenance and capital replacement •Continue environmental stewardship programs •Facility energy reduction, electric fleet, organics education, salt reduction, chloride monitoring. •New recycling contract in FY 2025. •EAB impacts to yard waste site. •Increased state fees for utility funds •DNR water surcharge, Met. Council sewer treatment, etc. 31 Administration & Admin Services – Maria Solano 32 Department budget highlights •Council •Increases in council training budget •City Clerk - Elections •Successfully execute 3 elections •March – Presidential Primary •August – Primary •November – General Election •Implement new requirements established by the legislature •Increase in temporary salary budget 33 Department budget highlights Information Technology •Continued investment in network security •Rising costs in software fees Communications •Rising cost in printing/publishing and postage •Website redesign for increased accessibility Finance •Replace outdated ERP system 34 Human Resources – Ali Timpone 35 HR – Budget Highlights The HR budget is reflective of the city’s commitment to equity and inclusion and in support of recruitment and retention of high performing staff. •Training and development programs for city staff to learn and grow •Pathways into public service and career development programs •Employee engagement and community outreach initiatives •Connections with local, regional and national organizations to support equity and inclusion •Review of programs with an equity lens •Consideration of the impacts of new legislation 36 Community & Economic Development – Grant Fernelius 37 Community & Economic Development General Fund •Administration, Planning & Inspections Special Revenue Fund •CDBG Component Unit •Section 8, HRA General 38 Community & Economic Development •Infill and redevelopment will drive permit revenues Work Priorities: •City Center 2.0 •Prudential •Four Seasons Site •Housing Aid •Moderate Income Housing Policy (HRA) •Business Retention (Plymouth Proud) 39 Next Steps •Departments to meet to discuss budgets – July 2023 •July 25, 2023 – Finance Overview presentation to council and presentation of the 2022 ACFR •Prepare preliminary budget information – send to council in early August •August 22, 2023 – Present preliminary budget for levy impacted funds 40 Budget Meeting Discussion Items Scheduled •10 Year Financial Plan •Personnel Expenses & Health Insurance •Levy Impacted Funds & CIP •Enterprise Funds & CIP •Internal Service Funds & CIP •Debt Levy •Utility Rate Study •Inflationary Pressures Other •Social services funding •Lawful Gambling •Street Replacement Levy •Park Replacement Levy •Surplus Funds •Franchise Fees 41 Special City Council June 27, 2023 Agenda Number:2.2 To:Dave Callister, City Manager Prepared by:Chloe McGuire, Planning and Development Manager Reviewed by:Grant Fernelius, Community and Economic Development Director Item:Discuss amendments to the accessory dwelling unit (ADU) code requirements 1.Action Requested: Direct staff on next steps related to the proposed code amendment. 2.Background: The Planning Commission 2023 Work Program included an update to the accessory dwelling unit (ADU) section of the zoning ordinance. The Planning Commission has met twice on this topic, February 15 and June 21, 2023, and held a public hearing at their June 21 meeting. No residents attended, but one did write in a comment which is attached. The proposed amendments update the city code to: - Respond to market realities - Respond to resident requests - Increase compliance with zoning ordinance standards - Provide affordable housing The Planning Commission recommended approval of the amendments unanimously, with the following additions: - ADUs are not eligible for impervious surface or shoreland overlay variances - Sufficient parking must be provided onsite, as determined by the Zoning Administrator (change from two additional required stalls) Staff would also like feedback on the maximum allowed size for a detached ADU. Under the drafted code, both attached and detached ADUs are allowed to be 1,000 square feet or the size of the home, whichever is less. Under the current detached accessory building code (e.g. detached garages or sheds), the maximum allowed size is 30 percent of the area of the rear yard, to a maximum size of 700 square feet. Does the council feel that 1,000 square feet for attached ADUs and 700 square feet for detached ADUs is sufficient? 3.Budget Impact: NA 42 4.Attachments: Draft Ordinance Comparable Cities Regulations Family Housing Fund Memo Family Housing Fund Regulation Chart Resident Comment 43 CITY OF PLYMOUTH HENNEPIN COUNTY, MINNESOTA ORDINANCE NO. 2023-** ORDINANCE AMENDING CHAPTER 21 OF THE PLYMOUTH CITY CODE, ENTITLED THE PLYMOUTH ZONING ORDINANCE (20230XX) THE CITY OF PLYMOUTH ORDAINS: Section 1. Amendment. Section 21005.02 of the Plymouth City Code (RULES AND DEFINITIONS—DEFINITIONS) is amended by adding, deleting, or changing the following definitions as follows: Dwelling Unit, Accessory: A self-contained dwelling having its own kitchen and bathroom facilities, and which is designed as a second separate dwelling unit that is clearly incidental and subordinate to the principal use of a lot as a single-family detached residence. A self-contained unit that is subordinate and clearly incidental to a primary structure, intended for occupancy by one or more persons, that includes facilities for living, sleeping, cooking, and eating. The definition does not include hotels, tents, seasonal cabins, boarding or rooming houses, motor homes, or travel trailers, nor does it include licensed residential facilities (e.g., assisted living, memory care, skilled nursing). Section 2. Amendment. Section 21190.04 of the Plymouth City Code (ACCESSORY DWELLING UNITS) is amended as follows: Subd. 1. Accessory dwelling units may be allowed residential subdivisions that have received preliminary plat approval on or after June 1, 2001 and that include ten (10) or more single-family lots, subject to the approval of an administrative permit.on residential lots with a detached, single-family home within the FRD, RSF-1, RSF-2, RSF-3, or residential PUD district. Accessory dwelling units are not allowed on properties with apartment buildings or attached townhomes. Subd. 2. An accessory dwelling unit may be allowed provided all of the following conditions are met: (a) An accessory dwelling unit shall may be located above an attached or detached garage that is accessory to a single-family detached home; located in the RSF-R, RSF-1, RSF-2, or PUD zoning district. internal to an existing single-family home; attached to an existing single-family home; above an attached garage; or detached as a standalone structure. (b) An administrative permit for the accessory dwelling unit may shallonly be applied for concurrently with the application for a building permit for construction of the principal structure on the lot 44 (c) Not more than one (1) accessory dwelling unit shall be allowed per on a single-family detached lot. (d) An attached or detachedAny accessory dwelling unit shall comply with the same minimum building setback requirements as required for the living portion of the principal dwelling unit. (e) Except as noted in (c) above or as otherwise specified in this subdivision, a detached accessory dwelling unit shall be subject to the same regulations as provided for under Section 21120 of this Chapter. (f) An accessory dwelling unit shall be a clearly incidental and subordinate use, the gross floor area of which shall not exceed the gross floor area of the principal dwelling unit or one thousand (1,000) square feet, whichever is less. The accessory dwelling unit shall be a minimum of two hundred square feet. (g) The exterior design of an accessory dwelling unit shall incorporate a similar architectural style, roof pitch, colors, and materials as the principal building on the lot, and shall be compatible with the character of the surrounding residential buildings, subject to approval by the Zoning Administrator. (h) The owner of the property shall reside in full time on the subject property for at least nine months of the year in the principal dwelling unit or in the accessory dwelling unit. (i) 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 license pursuant to Chapter IV (Housing and Redevelopment) of the City Code. The accessory dwelling unit shall not be rented as a short-term rental. (j) There shall be no separate ownership of the accessory dwelling unit. (k) In addition to the parking spaces required for the principal dwelling unit on the lot, two (2) off- street parking spaces shall be provided for an accessory dwelling unit. Such accessory dwelling unit parking spaces shall not conflict with the principal dwelling unit parking spaces, and shall comply with the requirements of this Chapter. (l) The accessory dwelling unit shall be addressed as a separate unit with the same numerical address as the principal structure pursuant to An accessory dwelling unit shall have a separate address from the principal dwelling unit on the lot, and shall be identified with address numbers pursuant to Chapter IV (Building Code) of the City Code. (m) The principal dwelling unit and accessory dwelling unit shall be created and maintained in compliance with Chapter IV (Building Code, Housing Maintenance, and Housing and Redevelopment) of the City Code. (n) The principal dwelling unit and accessory dwelling unit shall be connected to municipal sewer and water and shall not have separate utilities from the principal structure. (o) The accessory dwelling unit shall have a foundation and shall be a permanent structure. (p) Any exterior entrance for the accessory dwelling unit shall be on the side or rear of the home. (q) The applicant must demonstrate that the proposed new construction or modifications to existing construction comply with the building code. (Amended by Ord. No. 2009-07, 05/12/09) (Amended by Ord. No. 2002-24, 06/25/02) 45 Section 3. Effective Date. This Ordinance shall be in full force and effect upon its passage. ADOPTED by the City Council on this ** day of *****, 2023. __________________________ Jeffry Wosje, Mayor ATTEST: ____________________________ Jodi M. Gallup, City Clerk 46 City Process Type Are setbacks same as principal or accessory structure? Size Rental Parking Address Are separate utilities allowed? Additional Terms Additional setback rules Detached, Location Max Height Handouts Apple Valley CUP Attached Internal 300 sq ft - 40% of main home's footprint 2 in addition to principal structure spaces No AUDs shall be permitted only where it is demonstrated that the accessory unit will not have an undue adverse impact on adjacent properties and where there will not be a substantial alteration of the character of the neighborhood. Bloomington Administrative Attached Internal Principal structure setbacks 300 - 960 sq ft or 33% of home footprint License is required Principal must have 4 No Burnsville Permitted Attached Internal Detached Attached - principal structure Detached - accessory structure 300 - 960 sq ft or 33% of home footprint License is required 1 in addition to prinicipal structure spaces Same Address No Burnsville Crystal Permitted Attached Internal Detached < 50% of primary home area May be rented 1 in addition to principal structure spaces ADU is unit B No Minimum 10 feet from principal structure Crystal Eagan Annual Registration Attached Internal 300 - 960 sq ft or 33% of home footprint 2 in addition to principal structure spaces No Eagan Twin Cities ADU Regulations Note that all listed cities: only allow 1 ADU, only allow ADUs in single family residential districts, require the ADU matches the home, and require the owner to live onsite, and do not allow separate ownership of an ADU 47 Golden Valley Administrative review, Conditional Use Permit for detached if does not meet same side and rear setbacks as principal Attached Internal Detached Principal structure 250 - 950 sq ft or 35% of home's gross living area (whichever is less) License required 1 in addition to principal structure spaces No Entrance to face side or rear yard, rooftop deck not allowed Completely to the rear of principal structure, minimum lot size of 10,000 sq ft, located no less than 10 ft from side or rear lot line, located no less than 10 feet from principal structure 12 ft Golden Valley Hopkins Permitted Attached Detached Accessory structure < 800 sq ft No short term rentals No additional parking required No Entrances not to face nearest side or rear lot line. Detached is referred to as "backyard cottage" and attached is called "secondary suite" 10 ft min front setback, 3 ft min side and rear setback (same as accessory structure) Minimum distance from principal - 15 feet Inver Grove Heights City registration Attached Internal Detached 250 - 1000 sq ft License required 2 in addition to principal structure spaces Detached has separate address No Lakeville Attached Internal Principal structure < 30% principal structure area Permitted 3 garage stalls for adu and principal Same address No Long Lake CUP Principal structure < 900 sq ft Cannot be rented to individuals unrelated to owners 2 in addition to principal structure spaces Minneapolis Administrative - Filing a covenant with Hennepin County, must be submitted to zoning administrator for building permit Attached Internal Detached All > 300 sq ft. Internal < 800 sq ft. Detached < 1,300 sq ft, and Footprint not to exceed 676 sq ft or 10% of lot No additional parking required No Shall be located on 1 level, no additional entrances facing the public street Side and rear yard may be reduced to 3 feet Minimum 20 feet from principal structure 21 ft Minneapolis 48 Minnetonka Conditional Use Permit for internal and attached, Variance+CUP for detached Attached Internal Detached Principal structure 200 - 950 sq ft or 35% of the gross living area of home Case by case No Front 35 ft, side min 10 ft, rear 20% lot depth or 40 ft, whichever is less Minnetonka St Louis Park Administrative review Attached Internal Detached Principal structure Detached < 800 sq ft or 25% of back yard. Attached < 40% of gross living area. All > 200 sq ft No short term rentals No additional parking required Yes Rooftop deck no allowed, permanent foundation is required, Unit must be lockable and not have direct access to the principal living space Side yard or Back yard only, Located minimum 15 feet from rear lot line, Located a minimum of 5 ft from side property 15 ft St Louis Park Ramsey Permitted use, CUP required for conversion of lawful nonconforming garage Attached Detached Accessory structure < 800 sq ft No additional parking required Must retain same address No Must have permanent foundation. ADUs contain complete independent living facilities with 3 or more of the following - living, sleeping, eating, sanitation Ramsey Richfield Permitted use Attached Detached Attached - principal, detached - garage 300 sq ft - 800 sq ft or the gross floor area of the home (whichever is less) License required 3 in addition to principal structure spaces No Must be attached to principal structure or garage 18 ft or height of home Richfield Wayzata Permitted Use, Conditional Use Permit Attached Internal Detached 10 ft setback 300 - 960 sq ft or 33% of home footprint Cannot be rented 1 in addition to principal structure spaces 10 ft setback 49 ADUs: Housing Options for a Growing Region Accessory Dwelling Units (ADUs) are a flexible, neighborhood-scale solution to regional housing needs. Cities can encourage ADUs as part of their overall housing strategy by adopting proven policies. POLICY BRIEF 50 22 FAMILY HOUSING FUND | ADUs: Housing Options for a Growing Region | February 2019 What makes ADUs good for cities? ADUs provide affordable options in the private market: Most ADU rents are affordable to a household earning less than $56,000 annually.1 • ADUs represent gentle, or “hidden” density as a form of small-scale infill housing. • ADUs provide access for renters to established, well-connected neighborhoods. • ADUs are built by homeowners on existing lots, providing new housing without expensive land acquisition costs, and add value to the property, which can lead to increased property tax revenue for a city. • ADUs typically serve one- and two-person households, a growing demographic segment which comprises the majority of Twin Cities households.2 • ADUs support stable homeownership by serving lifecycle housing needs. Over time, rental income provided by an ADU can help homeowners pay their mortgages or save up. Homeowners may use their ADU to house family members who need care, or they may move into the ADU themselves to downsize. • ADUs are environmentally-friendly housing options because they are smaller and use less energy than the average home. They help reduce transportation- related environmental impacts when they are located near employment centers and established public transit routes.3 • ADUs support the local economy, as homeowners typically hire local construction and design firms to build them. • ADUs help create vibrant neighborhoods as new residents increase the customer base for nearby businesses and services. ADUs are often known as “carriage houses,” “in-law suites,” and “granny flats.” They are adjacent or attached to a primary home, and have their own entrance, kitchen, living area, and bathroom. ADUs can be located within a home, attached to a home, or as a detached structure in a backyard (sometimes above a garage). ADUs are a unique housing form created by individual homeowners and scattered throughout neighborhoods. What is an ADU? 1 Rent data from FHFund survey results. See also: Garcia, David. UC Berkeley Terner Center for Housing Innovation. Dec. 2017. ADU Update: Early Lessons and Impacts of California’s State and Local Policy Changes. ternercenter.berkeley.edu/uploads/ADU_Update_Brief_December_2017_.pdf 2 Metropolitan Council. Thrive MSP 2040 Housing Policy Plan. July 2015. p. 9 3 See Stephan, A., Crawford, R.H., 2016. The relationship between house size and life cycle energy demand: implications for energy efficiency regulations for buildings. Energy 116 (Part 1), 1158–1171. dx.doi.org/10.1016/j.energy.2016.10.038 A 2014 study found that ADU residents in Portland were less likely than the average to own cars (State of Oregon Department of Environmental Quality, 2014. Accessory dwelling units in Portland, Oregon: evaluation and interpretation of a survey of ADU 51 Why do we need ADUs as a housing option? ADUs can help reduce pressures on the regional housing market, including: • Increasing demand for more housing units: To meet the needs of anticipated workforce growth and other population trends, the seven-county Twin Cities region needs to add nearly 13,000 units of housing each year through 2040.4 ADUs engage private homeowners as a new set of partners addressing this housing need, without public subsidy. • Low supply of rental housing stock: Throughout the Twin Cities metro area, vacancy rates for studio and one-bedroom units are 2.1% and 2.3%, respectively— far below a healthy rate of 5% or more.5 Adding ADUs in existing neighborhoods helps to address this gap. • Cost pressures for renters: The greatest demand over the next 20 years will be for rental units priced below $1,875/month (in 2019 dollars), as ADUs typically are.6 • Smaller households: The type of new housing needed in the coming decades will be affected by changing demographic trends. Nearly half of the region’s projected household growth will be individuals living alone, and ADUs are typically designed for these smaller households.7 • Aging population: Four-fifths of household growth will be in older households headed by individuals aged 65 and older, many seeking options to downsize in their own neighborhoods; ADUs provide this option.8 Where can I find ADUs? Currently, an estimated 18 cities in the Twin Cities metropolitan area have policies permitting ADUs and approximately 150 permitted ADUs exist in the region. However, ADUs have always existed in the Twin Cities. 33 FAMILY HOUSING FUND | ADUs: Housing Options for a Growing Region | February 2019 Eric & Chrissi Larsen inside their ADU Hidden Density Can you spot the modern, spacious ADU behind this home in Saint Paul? 4 Met Council Housing Policy Plan. p. 9 5 Marquette Advisors Apartment Trends, 1st Quarter 2018. 6 FHFund/Lisa Sturtevant & Associates, 2018, forthcoming 7 Met Council Housing Policy Plan, p. 9 8 Met Council Housing Policy Plan, p. 9 9 Met Council Housing Policy Plan, p. 151: The region needs 9,550 new units of housing to meet the needs of households earning between 51-80% of the Area Median Income by 2030. Per Metropolitan Council 2017 estimates, there are approximately 721,035 single-family homes in the Twin Cities region. stats.metc.state.mn.us/profile/detail.aspx?c=R11000 How much housing could ADUs provide? ADUs are a cost-effective way to meet a substantial portion of the Twin Cities region’s future housing need without public subsidy. If ADUs in the seven-county metro area became as common as they are in Portland, Oregon (representing about 1.5% of single-family homes), we could create 11,000 new housing units, potentially meeting most of the region’s need for new housing for households who earn $40,000-50,000 per year.9 11,000 NEW HOUSING UNITS 52 How can local policies support ADU development? The evidence is clear: local government policies and practices that reduce regulatory and cost burdens make a critical difference in whether ADUs can reach their full potential for communities. • I n Austin, Texas, allowing larger ADUs (up to 1,100 square feet) and reducing other requirements10 paved the way for permit requests to rise nearly tenfold. • In Portland, Oregon, annual ADU permit volume increased from just 24 (in 2009) to 615 (in 2016) when it waived development fees for ADUs, saving homeowners $8,000-12,000 per unit.11 • In Los Angeles, California, ADU permits jumped from 80-90 per year to 1,980 in 2017, after California’s state legislature required cities to adopt ADU policies.12 44 FAMILY HOUSING FUND | ADUs: Housing Options for a Growing Region | February 2019 Flexible for Households Multigenerational Fue Lee’s parents live in the first-floor ADU attached to the family’s house in North Minneapolis. Fue and his adult siblings live in the main home. The Lees’ home and its neighbor to the north were developed by the City of Lakes Community Land Trust as the first two homes to be built with an ADU in Minneapolis. Encouraging ADUs: Best Practices for Cities REMOVE REGULATORY BARRIERS • Allow different types of ADUs as an accessory to all single-family or small multifamily homes, permitted by right rather than conditionally • Designate ADU experts within departments to facilitate a clear permitting process • Remove or reduce parking minimums • Remove owner-occupancy restrictions • Make design standards more flexible PROMOTE ADUs AND INCREASE ACCESS TO INFORMATION • Create a dedicated webpage and resource materials for ADU development • Host quarterly informational workshops about ADUs • Sponsor, promote, and participate in ADU tours LOWER COSTS AND INCREASE ACCESS TO CAPITAL • Offer homeowners waivers, discounts, tiered pricing, and payment plans for fees • Develop an ADU loan program for homeowners • Work with developers to incentivize building ADUs in new construction Illuminating solutions. Sparking change. FHFUND.ORG 10 Austin Development Services Department. Accessory Dwelling Units. ww.austintexas.gov/page/adu 11 City of Portland, Oregon. City Council Extends the SDC Waiver for ADUs, with Conditions. June 27, 2018. https://www.portlandoregon.gov/bds/article/689356 12 Garcia, David. UC Berkeley Terner Center for Housing Innovation. Dec. 2017. ADU Update: Early Lessons and Impacts of California’s State and Local Policy Changes. ternercenter.berkeley.edu/uploads/ ADU_Update_Brief_December_2017_.pdf 53 APPENDIX BEST PRACTICES FROM PEER CITIES Allow ADUs to be permitted by right for all single-family and two- family developments. In California, allowing ADUs to be processed ministerially (i.e. administratively/by right) has had a major impact, with a rapid rise in ADU permit applications after the enactment of SB 1069 and AB 2299 in January 2017.13 The City of Oakland had a sevenfold increase, from 33 permit applications in 2015 to 247 in 2017. The City of Los Angeles had a nearly 25-fold increase in applications, from 80 in 2016 to 1,980 in 2017. Remove or reduce parking minimums. In Oregon, a survey conducted by the Department of Environmental Quality found that ADUs had a negligible impact on parking congestion.14 ADU residents had a below-average vehicle ownership rate (less than one per household), and the dispersed nature of ADU development meant any additional on-street parking impact was also dispersed throughout the city. Remove owner-occupancy and household size restrictions. Most peer cities nationally and three Minnesota cities (Crystal, Stillwater, and Northfield15) do not have owner- occupancy requirements. These requirements limit the use of the property over time and may be a disincentive to homeowners considering ADU development or limit their financing options. Make design standards more flexible. After adjusting its regulations in 2015 to allow larger floor areas, Austin, Texas saw a marked increase in ADU development, from 250 issued permits from 1994 to 2015 to more than 600 in the three years since the change.16 Designate ADU experts in departments to facilitate a clear permitting process. To clear its backlog of ADU applications, San Francisco is working with multiple city departments to define a checklist of consistent guidelines to help homeowners successfully navigate city processes.17 Offer waivers, discounts, tiered pricing, and payment plans for fees. WAIVER FOR AFFORDABILITY: The City of Santa Cruz, California waives permit fees on a sliding scale in exchange for a commitment to renting an ADU to a low-income household. Approximately 39 households have used this waiver since 2016.18 TIERED PRICING: Most cities already offer tiered pricing in some form, such as for building permits. Offering tiered pricing for other fees, such as sewer access charges, can help reduce what would otherwise be a larger fixed cost for homeowners wishing to build an ADU. Develop an ADU loan program. The County of Santa Cruz in California,19 the City of Portland, Oregon,20 and the West Denver Renaissance Collaborative (WDRC) in Colorado21 are developing low- or no-interest loan programs for ADU development. Each program has an affordability focus, either creating affordable rental units or building wealth and stability for lower-income homeowners. Santa Cruz County also has a specialized My House, My Home ADU loan program to help low-income senior homeowners build ADUs so that they can afford to age in place.19 Work with developers to incentivize building ADUs in new construction. The City of Lakes Community Land Trust (CLCLT) builds and sells multigenerational-living homes with attached ADUs in Minneapolis. The homes are designed for flexibility, with ADUs at the back of the first floor that can open to the inside of the main home or can be accessed through a separate entrance, allowing the home to meet changing housing needs over multiple generations. REMOVE REGULATORY BARRIERS LOWER COSTS AND INCREASE ACCESS TO CAPITAL 55 FAMILY HOUSING FUND | ADUs: Housing Options for a Growing Region | February 2019 Encouraging ADUs in Your City Continued on next page 54 FEBRUARY 2019 ©Family Housing Fund 13 Garcia, David. 14 Oregon Department of Environmental Quality. 15 Northfield is noted here but is not counted as part of the 18 cities that have an ADU policy as it is outside the Twin Cities metro area. 16 City of Austin. Open Data. data.austintexas.gov 17 Sabatini, Joshua. “Just 23 in-Law Units Built after Two Years as SF Seeks to Iron out Approval Process.” The San Francisco Examiner. 25 Feb. 2018. www.sfexaminer.com/just-23-law-units-built-two-years-sf-seeks-iron-approval-process 18 City of Santa Cruz 2016 Accessory Dwelling Units Fee Waiver Information and Application www.cityofsantacruz.com/home/showdocument?id=53802 19 Santa Cruz County. Accessory Dwelling Units. Plan Your Financing. www.sccoplanning.com/ADU/Planyourfinancing.aspx 20 Portland Housing Bureau. Accessory Dwelling Unit Pilot Loan Program. www.portlandoregon.gov/phb/article/661992 [PDF Slides] 21 Martinez-Stone, Renee. 28 June 2018. 22 Peterson, Kol. 2018. Backdoor Revolution: The Definitive Guide to ADU Development. Accessory Dwelling Strategies, LLC. p. 227-228 23 Eastman, Janet. 29 Aug. 2017. “Get inside 24 Rentable Granny Flats: Portland’s Accessory Dwelling Unit Tour (Photos).” OregonLive.com. www.oregonlive.com/hg/index.ssf/2017/08/granny_flat_adu_tour_pdx_kol_p.html. 24 Lee, Chris. 25 Apr. 2018. “Minneapolis & Saint Paul Home Tour Features Homes and Neighborhood Pride.” Midwest Home. midwesthome.com/124463-2 APPENDIX BEST PRACTICES FROM PEER CITIES …continued Create a dedicated webpage and host informational workshops on ADU development. City of Santa Cruz, California has become a national model by appointing dedicated staff to the development of its ADU program, creating a guide for homeowners, sharing prototypes of architectural plans, hosting workshops, and creating a webpage with ADU information.22 Sponsor, promote, and participate in ADU tours. The city of Portland boasts an annual ADU tour, run in partnership between advocates and the City. It has been a successful beginning point for many ADU homeowners, who embarked on their developments after attending the tour.23 Locally, a few ADUs already have been popular stops on the Minneapolis & Saint Paul Home Tour.24 PROMOTE ADUs AND INCREASE ACCESS TO INFORMATION Illuminating solutions. Sparking change. FHFUND.ORG 310 4th Ave South Suite 9000 Minneapolis, MN 55415 MAIN 612.375.9644 55 Cities in the Twin Cities Metro Area with an ADU Policy Updated: February 2019 Local Cities Where are ADUs allowed? Special Permit Required? Parking for ADU Owner Occupancy Water/ Sewer Min. Lot Size Lot Coverage Min. ADU Size Max. ADU Size Type Ordinance Section Notes # Built or legalized Apple Valley In R-1 zoning district Conditional Use Permit 2 off-street for the ADU and 2 off-street for the main home Yes Must connect to main house 40,000 SF Cannot exceed 35% 300 SF Shall be no larger than 40% of the main home's footprint Attached, Internal 155.382 ADU occupancy limited to 3 people; ADUs must be two bedrooms or fewer 2 Bloomington* In R-1 and RS-1 zoning districts Primary home must have 4 off-street parking spaces Yes Must connect to main house 11,000 SF 300 SF 960 SF or 33% of the 4- season living area of the main home Attached, Internal § 21.302.03 ADU occupancy limited to 2 people; ADUs must be two bedrooms or fewer 1 permitted and constructed Burnsville In R-1 and R-1A zoning districts 1 off-street for the ADU and 2 off-street for the main home Yes Must connect to main house. If not on municipal lines, must meet private well and septic standards 10,000 SF for attached 1 acre for detached 300 SF 960 SF or 33% of the footprint of the main home Attached, Detached, Internal 10.7.52 ADUs must be two bedrooms or fewer; require park dedication and utility fees 0 Chaska In Planned Unit Developments Yes 768 SF Detached, above garage with alley access Ord. #708 10 Crystal In R-1 and R-2 zoning districts 1 additional for the ADU No Can be connected to property or utility main 6,000 SF Shall not exceed 50% of the finished floor area of the primary home Attached, Detached, Internal Chapter V, Subsection 515.23, Subdivision 3 1 permitted Eagan In Estate and R-1 zoning districts Annual Registration 2 off-street for the ADU and 2 off-street for the main home Yes Must connect to main house Cannot exceed 20% 300 SF 960 SF or 33% of the 4- season living area of the main home Attached, Internal Section 11.70, subdivision 32 ADU occupancy limited to 2 people; ADUs must be two bedrooms or fewer 1 constructed and 1 legalized Inver Grove Heights In the A, E-1, E-2, R-1A, R-1B, and R-1C zoning districts 2 off-street for the ADU and 1 off-street for the main home Yes Must share with main house 1 acre for detached 250 SF 1,000 SF Attached, Detached, Internal 10.18.1 ADU occupancy limited to 3 people 5 registered Lakeville In RS-1, RS-2, RS-3, and RS-4 zoning districts and Planned Unit Developments 3 garage stalls for the ADU and main home Must share with main house Attached, Internal 11.50.11.F, 11.51.11.F, 11.52.11.F, 11.53.11.F Must be accessed from inside the main home 2 permitted Long Lake In the R-1, R-1A, R-2, R- 3, and R-4 zoning districts Conditional Use Permit 2 for the ADU Yes x2 the minimum lot size required by the zoning district 900 SF Cannot be rented to non-family members 156 Cities in the Twin Cities Metro Area with an ADU Policy Updated: February 2019 Local Cities Where are ADUs allowed? Special Permit Required? Parking for ADU Owner Occupancy Water/ Sewer Min. Lot Size Lot Coverage Min. ADU Size Max. ADU Size Type Ordinance Section Notes # Built or legalized Minneapolis As an accessory to a permitted or conditional single-family or two- family dwelling. 0 for the ADU, 1 space each for other units Yes Connect to main home or the street 300 SF Internal: 800 SF not to exceed the first floor of the main home. Attached: 800 SF Detached: 1,300 SF (incl. parking areas) or 16% of the lot area. Footprint not to exceed 676 SF or 10% of the lot area, not to exceed 1,000 SF Attached, Detached, Internal 537.11 ~120 permitted and built Minnetonka In R-1 and R-2 zoning districts Conditional Use Permit Determined on a case by case basis Yes Must connect to main home No more than 35% of the gross living area of the home, including the ADU or 950 SF, whichever is smaller. Attached, Internal Section 300.16.3.d 30 Plymouth Within residential subdivisions in RSF-R, RSF-1, RSF-2, and PUD zoning districts, that have received preliminary plat approval on or after June 1, 2001 and that include 10 or more single-family lots 2 off-street for the ADU Yes Detached must connect to utility main Shall not exceed the gross floor area of the main home or 1,000 SF, whichever is less Attached, Detached 21190.04 Can only be constructed at the same time as the primary home, as part of a subdivision of 10 or more homes 0 Richfield In R and R-1 zoning districts 3 off-street spaces are required Yes Attached and Internal may connect to home 300 SF 800 SF or the gross floor area of the principal dwelling, whichever is less Attached, Detached, Internal 514.05 Subd. 8, 518.05 Subd. 8 Detached units are only allowed as part of a garage. 2 existing Roseville In the LDR-1 zoning district 1 additional off-street space for the ADU Yes Attached and Internal may connect to home 300 SF 650 SF or 75% of the 4- season living area of the main home Attached, Detached, Internal 11.011.12.B.1 ADU occupancy limited to 2 people; ADUs must be one bedroom or fewer 5, 2 of which were legalized; 1 in processing Shoreview In RE and R-1 zoning districts Accessory Apartment Permit 3 off-street spaces are required Yes Must share with main house 500 SF No more than 30% of the building's total floor area nor greater than 800 SF Attached, Internal 207.01 ADUs must be two bedrooms or fewer St. Paul R1-R4, RT1, RT2, RM1, RM2 Annual affadavit of owner- occupancy No additional spaces if principal home meets minimum parking requirement Yes Must connect to principal home 5,000 SF 800 SF; if interior to the principal structure, the principal structure must be at least 1,000 SF and the ADU must not exceed 1/3 of the total floor area Attached, Detached, Internal Chapers 61, 63, 65, and 66 1 257 Cities in the Twin Cities Metro Area with an ADU Policy Updated: February 2019 Local Cities Where are ADUs allowed? Special Permit Required? Parking for ADU Owner Occupancy Water/ Sewer Min. Lot Size Lot Coverage Min. ADU Size Max. ADU Size Type Ordinance Section Notes # Built or legalized Stillwater In TR, CTR, and RB zoning districts In CTR and RB: Special Use Permit 4 off-street for the ADU and main house No Can be connected to property or utility main TR and RB: 10,000 SF CTR: 15,000 SF CTR: 500 SF, one story attached or 720 SF above a detached garage RB: 800 SF TR and CTR: Attached, Detached, Internal RB: Detached, above garage Sec. 31-501 16 approved, but likely more that were permitted by right in RB White Bear Lake Where single-family homes are permitted Conditional Use Permit Annual Certificate of Occupancy renewal Determined on a case by case basis Yes Can be connected to property or utility main 200 SF for the first occupant plus 100 SF for each additional occupant 880 SF or 40% of the habitable area of the main home Attached, Detached Section 1302.125 Maximum of 4 occupants 10 permitted * Updated policy is currently under consideration as of February 2019 358 From: Colin King <colinjamesking@gmail.com> Sent: Wednesday, January 18, 2023 8:15:44 PM To: Chloe McGuire <cmcguire@plymouthmn.gov> Cc: Annie King <anniemarieking@gmail.com> Subject: ADU Consideration Good Evening, My wife and I heard that the city is considering allowing accessory dwelling units and wanted to write and express our support. We Live at 1430 Ranier Ln N and have been gathering information about ADUs. I work as an emergency physician, and an ADU would provide me with a place to sleep separate from our house when I am working overnight and sleeping during the day. The ADU would also allow my family to go about their day without worrying about making too much noise while I sleep. I fully support the city allowing ADUs and appreciate your consideration of this measure. Best regards, Colin & Annie King 59 Special City Council June 27, 2023 Agenda Number:2.3 To:Dave Callister, City Manager Prepared by:Jodi Gallup, City Clerk/Administrative Coordinator Reviewed by:Maria Solano, Deputy City Manager Item:Set future study sessions 1.Action Requested: Schedule study sessions and/or add topics as desired. Calendars are attached to assist with scheduling. 2.Background: Pending study session topics (at least three council members have approved the following study items on the list): - None at this time. Other council requests: - None at this time. Staff requests for special meeting topics and/or changes: - Schedule review of board and commission applications on November 28 at 6 p.m. - Schedule interviews for board and commission applicants on December 5 at 5 p.m. 3.Budget Impact: N/A 4.Attachments: July August September 60 SUN MON TUE WED THU FRI SAT 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 July 2023 3400 Plymouth Boulevard Plymouth, MN 55447 OFFICIAL CITY CALENDAR 763-509-5080 plymouthmn.gov SUN TUES MON WED THUR FRI SAT 6:00 PM SPECIAL COUNCIL MEETING Environmental Stewardship Medicine Lake Room 7:00 PM REGULAR COUNCIL MEETING Council Chambers INDEPENDENCE DAY CITY OFFICES CLOSED 7:00 PM HOUSING AND REDEVELOPMENT AUTHORITY MEETING Council Chambers 7:00 PM ENVIRONMENTAL QUALITY COMMITTEE MEETING Medicine Lake Room 7:00 PM PLANNING COMMISSION MEETING Council Chambers 30 31 61 SUN MON TUE WED THU FRI SAT 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 August 2023 3400 Plymouth Boulevard Plymouth, MN 55447 763-509-5080 plymouthmn.gov SUN TUES MON WED THUR FRI SAT 7:00 PM ENVIRONMENTAL QUALITY COMMITTEE MEETING Medicine Lake Room 7:00 PM PLANNING COMMISSION MEETING Council Chambers 6:00 PM SPECIAL COUNCIL MEETING Plymouth Ice Center 4th Sheet of Ice discussion Medicine Lake Room 7:00 PM REGULAR COUNCIL MEETING Council Chambers 7:00 PM HOUSING AND REDEVELOPMENT AUTHORITY MEETING Council Chambers 5:00 PM SPECIAL COUNCIL MEETING Budget discussion Medicine Lake Room 7:00 PM REGULAR COUNCIL MEETING Council Chambers OFFICIAL CITY CALENDAR 7:00 PM PLANNING COMMISSION MEETING Council Chambers 62 SUN MON TUE WED THU FRI SAT 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 September 2023 3400 Plymouth Boulevard Plymouth, MN 55447 OFFICIAL CITY CALENDAR 763-509-5080 plymouthmn.gov SUN TUES MON WED THUR FRI SAT CHANGES ARE MADE IN RED LABOR DAY CITY OFFICES CLOSED 5:00 PM SPECIAL COUNCIL MEETING Boards and Commissions discussion Medicine Lake Room 7:00 PM REGULAR COUNCIL MEETING Council Chambers 6:00 PM PARK & REC ADVISORY COMMISSION MEETING Council Chambers 7:00 PM HOUSING AND REDEVELOPMENT AUTHORITY MEETING Council Chambers 7:00 PM ENVIRONMENTAL QUALITY COMMITTEE MEETING Medicine Lake Room 5:00 PM SPECIAL COUNCIL MEETING Budget discussion Medicine Lake Room 7:00 PM REGULAR COUNCIL MEETING Council Chambers 7:00 PM PLANNING COMMISSION MEETING Council Chambers 7:00 PM PLANNING COMMISSION MEETING Council Chambers 63