Loading...
HomeMy WebLinkAbout06-07-2021 City Council Work Session Packet CITY COUNCIL WORK SESSION Mayor Amáda Márquez Simula Councilmembers John Murzyn, Jr. Connie Buesgens Nick Novitsky Kt Jacobs City Manager Kelli Bourgeois Public Safety Bldg—Training Room, 825 41st Ave NE Monday, June 07, 2021 7:00 PM AGENDA NOTICE THAT THIS MEETING MAY BE CONDUCTED BY A COMBINATION OF IN-PERSON AND ELECTRONIC MEANS Following a determination by City Manager Kelli Bourgeois, and emergencies declared by the United States, The State of Minnesota, and the Columbia Heights Mayor & City Council, this meeting may, pursuant to Minn. Stat. § 13D.021, occur by a combination of in-person and electronic means. In all meeting formats, members of the public who wish to attend may do so by attending in -person, by calling 1-312-626-6799 and entering meeting ID 891 4134 4862, or by Zoom at https:us02web.zoom.us/j/89141344862 at the scheduled meeting time. For questions regarding this notice, please contact the City Clerk at (763) 706-3611. CALL TO ORDER/ROLL CALL WORK SESSION ITEMS 1. Lexipol Policy Services Discussion 2. SACA Relocation Project Update 3. Police Department Recruitment and Retention Discussion 4. Report (Draft) for Sewer Modeling for Sanitary Sewer Collection District 1 5. 2021 Updates to Stormwater Plan 6. East African Community Meeting Debrief 7. Maintaining Affordable Rental Properties ADJOURNMENT Auxiliary aids or other accommodations for individuals with disabilities are available upon request when the request is made at least 72 hours in advance. Please contact Administration at 763-706-3610 to make arrangements. 1 illif LEXIPOL SOLUTIONS PROPOSAL PREPARED FOR: Columbia Heights Police Department Captain Matt Markham mmarkham@columbiaheights mn.gov (763)706-8109 PREPARED BY: Karen James kjames@lexipol .com (949)325-1230 2611 Internet Blvd, Ste 100 Frisco, Texas 75034 (844)312-9500 www.lexipol.com Distributed to City Council at 6/7/21 Work Session 2 Item 1. Executive Summary Public safety agencies and local government organizations today face challenges of keeping personnel safe and healthy, reducing risk and maintaining a positive reputation. Add to that the dynamically changing legislative landscape and evolving best practices, and even the most progressive, forward-thinking departments can struggle to keep up. Lexipol's solutions are designed to save you time and money while protecting your personnel and your community. Our team consists of professionals with expertise in public safety law, policy, training, mental health and grants. We continually monitor changes and trends in legislation, case law and best practices and use this knowledge to create policies, training, wellness resources and funding services that minimize risk and help you effectively serve your community. THE LEXIPOL ADVANTAGE Lexipol was founded by public safety experts who saw a need for a better, safer way to run a public safety agency. Since the company launch in 2003, Lexipol has grown to form an entire risk management solution for public safety and local government. Today, we serve more than 8,100 agencies and municipalities and 2 million public safety and government professionals with a range of informational and technological solutions to meet the challenges facing these dynamic industries. In addition to providing policy management, online training, wellness resources, and grant assistance, we provide 24/7 industry news and analysis through the digital communities Police1, FireRescue1, Corrections1, EMS1 and Gov1. Our customers choose Lexipol to make an investment in the safety and security of their personnel, their agencies and their communities. We help agencies address issues that create substantial risk, including: Inconsistent and outdated polices Lack of technology to easily update and issue policies and training electronically Unchecked mental health needs of staff Difficulty keeping up with new and changing legislation and practices Inability to produce policy acknowledgment and training documentation Unfamiliarity of city legal resources with the intricacies of public safety law The need to secure grant funding for critical equipment, infrastructure and personnel Lexipol is backed by the expertise of 320 employees with more than 2,075 years of combined experience in constitutional law, civil rights, ADA and discrimination, mental health, psychology, labor negotiations, Internal Affairs, use of force, hazmat, instructional design, federal and state grants and a whole lot more. That means no more trying to figure out policy, develop training or wellness content or secure funding on your own. You can draw on the experience of our dedicated team members who have researched, taught and lived these issues. We look forward to working with Columbia Heights Police Department to address your unique challenges. 3 Item 1. Page 3 of 5 4 Item 1. Page 4 of 5 5 Item 1. Prepared By: Karen James Phone: (949) 325-1230 Email: kjames@lexipol.com Overview Proposal Quote#: Date: Valid Through: Q-16827-4 1/26/2021 7/1/2021 Lexi pol empowers first responders and their communities to best serve the needs of their residents safely and responsibly. We are the experts in policy, training and wellness support for first responders and government leaders, helping address public safety challenges and improve the quality of life for all community members. Our solutions encompass state-specific policies, online learning, behavioral health resources, funding assistance, and news and analysis, including the on line digital communities Police1, FireRescue1, EMS1, Corrections1 and Gov1. The services proposed below are designed to meet your agency's specific goals and needs. QTY DESCRIPTION UNIT PRICE EXTENDED 1 Annual Law Enforcement Policy Manual & Daily Training Bulletins w/ USD 14,242.00 USD 14,242.00 Supplemental Publication Service w/ Procedures (12 Months) Subscription Line Items Total USD 14,242.00 1 Law Enforcement Standard Policy Cross-Reference USO 2,155.00 USO 2,155.00 1 Law Enforcement Agency-Specific Content Extraction USO 2,195.00 USO 2,195.00 1 Law Enforcement Tier I Implementation USO 6,646.00 USO 6,646.00 1 Law Enforcement Tier II Implementation USO 3,660.00 USO 3,660.00 1 Law Enforcement Tier Ill Implementation USO 3,342.00 USO 3,342.00 1 Law Enforcement Tier IV Implementation USO 4,375.00 USO 4,375.00 1 Law Enforcement Tier V Implementation USO 2,896.00 USO 2,896.00 One,-Time Line Items Total USO 25,2-69.00 -' USO 39,511.00 TOTAL: USO 39,511.00 *Law Enforcement Policy pricing is based on 29 Law Enforcement Sworn Officers. Law Enforcement Cross Reference Professional Services pricing is based on 200 pages. Notes Cross Ref based on 200 pp of current content+ city employee handbook. Discount Notes 3-Year Advance Payment Option -No rate increase until 2025 renewal if agency starts no later than July 1, 2021 with 3- year advance payment (initial invoice in July, payment due end of July 2021 ). Year 1 Total: $39,511 Year 2 Total: $14,242 Year 3 Total: $14,242 GRAND TOTAL 3-YEAR ADVANCE: $67,995. Page 5 of 5 6 Item 1. CITY COUNCIL WORK SESSION AGENDA SECTION WORK SESSION ITEMS MEETING DATE JUNE 7, 2021 ITEM: SACA Relocation Project Update DEPARTMENT: Community Development BY/DATE: Aaron Chirpich – 6/3/21 CITY STRATEGY: (please indicate areas that apply by adding a bold “X” in front of the selected text below) _Safe Community _Diverse, Welcoming “Small-Town” Feel _Economic Strength _Excellent Housing/Neighborhoods X Equity and Affordability _Strong Infrastructure/Public Services _Opportunities for Play and Learning _Engaged, Multi-Generational, Multi-Cultural Population BACKGROUND: Southern Anoka County Assistance (SACA) has been working with the City for several months on plans to relocate their business operations to the City owned development site located just north of the Public Safety campus. The SACA relocation site has been integrated into a larger Planned Unit Development (PUD) site plan that has been proposed by Reuter Walton Development. The PUD includes Reuter Walton’s proposed 62-unit affordable housing community and a future development parcel for the new SACA facility. The relocation has been prompted by SACA’s desire to expand their services and increase the capacity of their food shelf and thrift store operations. To achieve these objectives, SACA needs to build a new facility that is approximately double the size of their current location. The current SACA building is located on City owned property at 627 38th Avenue NE. SACA owns their building and they lease their site from the City. The existing land lease is set to expire in 2029. Under the terms of the lease, the City is obligated to buy SACA’s building from them when they vacate the site. To this end, staff has secured an appraisal of the building and the appraisal has rendered a value of $280,000. A copy of the appraisal is attached to this report. The Council recently approved a memorandum of understanding (MOU) outlining the terms of a deal with SACA to facilitate the relocation. Under the terms of the MOU, SACA will put the $280,000 building payment received by the City towards the purchase of their new site. SACA will own their new site, rather than lease from the City. The new development site has been assigned a value of $250,000. Therefore, the City will pay SACA an additional $30,000 to complete the transaction. For the SACA project to move forward, Reuter Walton needs to complete their land -use approval process. Upon successful establishment of the proposed PUD, SACA will be poised to finalize their site plans and submit application to the City for their land-use approvals. To better prepare for the next phase of the SACA project, staff would like to invite the SACA Board to the Work Session meeting to discuss the status of their relocation efforts and set benchmarks for advancing their project. ATTACHMENT(S): 1. SACA building appraisal 7 Item 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 A PPRAISAL F OR LIGHT INDUSTRIAL BUILDING LOCATED AT: 627 38TH AVENUE NE COLUMBIA HEIGHTS, MINNESOTA 55421 BUILDING ONLY VALUATION Prepared for Mr. aaron J Chirpich, MPS Community Development Director City of Columbia Hieghts 590 40th Avenue NE Columbia Heights, Minnesota 55421 PREPARIED BY CLARKE T. GOSET CERTIFIED GENERAL REAL PROPERTY APPRAISER MN LICENSE #4002042 Date of Inspection: 3/4/2021 Effective Valuation Date: 3/4/2021 Date of Appraisal Report: 5/10/2021 File Number: 39023 8 Item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ppraisers & Consultants 7ඐඈ+ඎඇൽඋൾൽ(ං඀ඁඍඒ7ඁඈඎඌൺඇൽ'ඈඅඅൺඋඌ  9 Item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ppraisers & Consultants &ODUNH7*RVHW &HUWLILHG*HQHUDO$SSUDLVHU $SSUDLVHU01/LFHQVH 10 Item 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 index 0HWKRGRI(QJDJHPHQW  'HVFULSWLRQRIWKH$SSUDLVDO)RUPDW - ([HFXWLYH6XPPDU\ - 2YHUYLHZRIWKH6XEMHFW3URSHUW\ - /RFDWLRQ0DS  =RQLQJ,QIRUPDWLRQ  0DUNHW,QIRUPDWLRQ - 2YHUYLHZRIWKH9DOXDWLRQ3URFHVV - 0DUNHW$SSURDFK - 3LFWXUHVRI6XEMHFW - 'HPRJUDSKLFV - 4XDOLILFDWLRQV - 'HWHUPLQDWLRQRI%XLOGLQJ9DOXH8WLOL]LQJ0DU NHW'DWD  5HFRQVWUXFWLRQ$SSURDFK - 11 Item 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 7KLVDSSUDLVDORIILFHZDVFRQWDFWHGE\WKHDGGUHVVHHKHUHLQ7KHSXUSRVHDQGIXQFWLRQRIWKLVDSSUDLVDOLV IRUGHWHUPLQLQJWKHYDOXHRIWKHEXLOGLQJRQO\ORFDWHGRQWKHOHDVHGODQGRZQHGE\WKH&LW\RI&ROXPELD +HLJKWV7KLVDSSUDLVDOLVIRUWKHXVHRIWKHDGGUHVVHHRQO\DQGLVQRWLQWHQGHGIRUDQ\RWKHUSXUSRVH7KLV DSSUDLVDORIILFHKDVQRWSUHYLRXVO\DSSUDLVHGWKHVXEMHFWSURSHUW\ method engagement 12 Item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tem 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 DESCRIPTION OF APPRAISAL FORMAT ZLOOEHFDSLWDOL]HGE\DQRYHUDOOUDWHWKDWZLOOUHIOHFWHFRQRPLFDOO\DYDOXHUDQJHWKDWLVSDVVHGWRWKH VXEMHFW¶VDELOLW\WRSURGXFHLQFRPH $IWHUWKHFRPSOHWLRQRIWKHVHDSSURDFKHVWKH\ZLOOEHFRUUHODWHGLQWRDILQDOFRQFOXVLRQRURSLQLRQRI PDUNHWYDOXHRIWKHSURSHUW\DVRIWKHGDWHRIWKHDSSUDLVDO 7KHODVWVHFWLRQRIWKLVDSSUDLVDOUHSRUWLVVXSSRUWLQJGDWDIRUWKHFRQFOXVLRQVDQGYDOXHVXWLOL]HGZLWKLQ WKHUHSRUW7KLVVHFWLRQLQFOXGHVSLFWXUHVRIWKHVXEMHFWSURSHUW\VDOLHQWGDWDRIWKHFRPSDUDEOHVXWLOL]HG UHJLRQDODQGFRPPXQLW\GHPRJUDSKLFVDQGHFRQRPLFDOSURILOHVRIWKHVXEMHFWDUHD 14 Item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³W\SLFDO´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tem 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 3HULQIRUPDWLRQSRVWHGRQWKH5HJLRQDO0XOWLSOH/LVWLQJ6HUYLFHWKHEHORZLVWKHODVWQRWHGVDOHVKLVWRU\ EXECUTIVE SUMMARY 6DOHV+LVWRU\ 16 Item 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 7KLV DSSUDLVDO UHSRUW FRQIRUPV WR WKH 8QLIRUP 6WDQGDUGV RI 3URIHVVLRQDO $SSUDLVDO 3UDFWLFH 863$3 DVVHWIRUWKE\WKH$SSUDLVDO)RXQGDWLRQ 7KHVXEMHFWUHDOHVWDWHZLOOEHDSSULVHGE\HVWLPDWLQJWKHPDUNHWYDOXHRIWKHIHHVLPSOHLQWHUHVW RIWKHUHDOHVWDWH)RUXVHLQWKHUHSRUWWKHPDUNHWYDOXHIRUWKHIHHVLPSOHLQWHUHVWLQWKHUHDOHV WDWHLVVXEMHFWWRWKHIROORZLQJGHILQLWLRQ³7KHIHHVLPSOHLQWHUHVWLVDQDEVROXWHIHHDIHHZLWK RXWOLPLWDWLRQVWRDQ\SDUWLFXODUFODVVRIKHLUVRUUHVWULFWLRQVEXWVXEMHFWWRWKHOLPLWDWLRQVRIHP LQHQWGRPDLQHVFKHDWSROLFHSRZHUDQGWD[DWLRQ$QLQKHULWDEOHHVWDWH´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tem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³WKHPRVWSURILWDEOHOLNHO\XVHWRZKLFKDSURSHUW\FDQEHSXW7KHRSLQLRQRIVXFKXVHPD\EH EDVHGRQWKHKLJKHVWDQGPRVWSURILWDEOHFRQWLQXRXVXVHWRZKLFKWKHSURSHUW\LVDGDSWHGDQG QHHGHGRUOLNHO\WREHLQGHPDQGLQWKHUHDVRQDEOHQHDUIXWXUH+RZHYHUHOHPHQWVDIIHFWLQJYDO XHZKLFKGHSHQGXSRQHYHQWVRUFRPELQDWLRQVRIRFFXUUHQFHVZKLFKDUHQRWIDLUO\VKRZQWREH UHDVRQDEO\SUREDEOHVKRXOGEHH[FOXGHGIURPFRQVLGHUDWLRQ$OVRLIWKHLQWHQGHGXVHLVGHSHQG HQWXSRQDQXQFHUWDLQDFWRIDQRWKHUSHUVRQWKHLQWHQWLRQFDQQRWEHFRQVLGHUHG´ ³WKDWXVHRIWKHODQGZKLFKPHUHDVRQDEO\EHH[SHFWHGWRSURGXFHWKHJUHDWHVWQHWUHWXUQWRODQG RYHUDJLYHQSHULRGRIWLPH7KHOHJDOXVHZKLFKZLOO\LHOGWRWKHODQGWKHKLJKHVWSUHVHQWYDOXH VRPHWLPHVFDOOHGµRSWLPXPXVH¶´ ,QHVWLPDWLQJWKHKLJKHVWDQGEHVWXVHWKHUHDUHHVVHQWLDOO\IRXUVWDJHVRIDQDO\VLV´  3RVVLEOH8VH7RZKDWXVHLVLWSK\VLFDOO\SRVVLEOH  3HUPLVVLEOH8VH /HJDO :KDWXVHVDUHSHUPLWWHGE\]RQLQJDQGGHHGUHVWULFWLRQV  )HDVLEOH8VH:KLFKSRVVLEOHDQGSHUPLVVLEOHXVHVZLOOSURGXFHDQ\QHWUHWXUQ EXECUTIVE SUMMARY +LJKHVWDQG%HVW8VH 18 Item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´  7KHXVHPXVWEHOHJDO  7KHXVHPXVWEHSUREDEOHQRWVSHFXODWLYHRUFRQMHFWXUDO  7KHUHPXVWEHDSURILWDEOHGHPDQGIRUVXFKXVHDQGLWPXVWUHWXUQWRWKHODQGWKHKLJKHVWQHW UHWXUQIRUWKHORQJHVWSHULRGRIWLPH *LYHQWKHVXEMHFW¶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tem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tem 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 WLRQVWDQGDUGV  7KHUHLVDQDGHTXDWHVXSSO\RIVDIHOHDG-IUHHGULQNLQJZDWHU  7KHVXEMHFWSURSHUW\KDVQRDSSDUHQWVLJQVRIVRLOFRQWDPLQDQWV  7KHUDGRQOHYHOLVDWRUEHORZ(3$UHFRPPHQGOHYHOV  7KHUHLVQRKD]DUGRXVZDVWHRQWKHSURSHUW\DQGWKHUHDUHQRKD]DUGRXVZDVWHVVLWHVQHDUWKH VXEMHFWSURSHUW\WKDWQHJDWLYHO\DIIHFWWKHYDOXHRUVDIHW\RIWKHSURSHUW\  $Q\IXQFWLRQLQJXQGHUJURXQGVWRUDJHWDQNVDUHQRWOHDNLQJDQGDUHSURSHUO\UHJLVWHUHG  $Q\DEDQGRQHG867¶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¶VRSLQLRQVRUFRQFOXVLRQV([WUDRUGLQDU\DVVXPSWLRQVSUHVXPHDVIDFW RWKHUZLVHXQFHUWDLQLQIRUPDWLRQDERXWSK\VLFDOOHJDORUHFRQRPLFFKDUDFWHULVWLFVRIWKHVXEMHFW SURSHUW\RUDERXWFRQGLWLRQVH[WHUQDOWRWKHSURSHUW\VXFKDVPDUNHWFRQGLWLRQVRUWUHQGVRU DERXWWKHLQWHJULW\RIGDWDXVHGLQDQDQDO\VLV 7KHOHJDOGHVFULSWLRQXVHGLQWKLVUHSRUWLVDVVXPHGWREHFRUUHFW 7KHDSSUDLVHUKDVPDGHQRVXUYH\RIWKLVSURSHUW\DQGQRUHVSRQVLELOLW\LVDVVXPHGLQFRQQHFWLRQ ZLWKVXFKPDWWHUV6NHWFKHVDQGSKRWRJUDSKVLQWKLVUHSRUWDUHLQFOXGHGRQO\WRDVVLVWWKHUHDGHU LQYLVXDOL]LQJWKHSURSHUW\ 1RUHVSRQVLELOLW\LVDVVXPHGIRUPDWWHUVRIDOHJDOQDWXUHDIIHFWLQJWLWOHWRWKHSURSHUW\QRULVDQ RSLQLRQRIWLWOHUHQGHUHG7KHWLWOHLVDVVXPHGWREHJRRGDQGPDUNHWDEOH ,QIRUPDWLRQIXUQLVKHGE\RWKHUVLVDVVXPHGWREHWUXHFRUUHFWDQGUHOLDEOH$UHDVRQDEOHHIIRUW KDVEHHQPDGHWRYHULI\VXFKLQIRUPDWLRQKRZHYHUWKHDSSUDLVHUDVVXPHVQRUHVSRQVLELOLW\IRU LWVDFFXUDF\ EXECUTIVE SUMMARY ([WUDRUGLQDU\$VVXPSWLRQV 21 Item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tem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tem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· 7KHVWDWHPHQWVRIIDFWFRQWDLQHGLQWKLVUHSRUWDUHWUXHDQGFRUUHFW · 7KHUHSRUWHGDQDO\VHVRSLQLRQVDQGFRQFOXVLRQVDUHOLPLWHGRQO\EHWKHUHSRUWHGDVVXPS WLRQVDQGOLPLWHGFRQGLWLRQVDQGDUHP\SHUVRQDOLPSDUWLDODQGXQELDVHGSURIHVVLRQDODQDO \VHVRSLQLRQVDQGFRQFOXVLRQV · :HKDYHQRSUHVHQWRUSURVSHFWLYHLQWHUHVWLQWKHSURSHUW\WKDWLVWKHVXEMHFWRIWKLVUHSRUW DQGQRSHUVRQDOLQWHUHVWZLWKUHVSHFWWRWKHSDUWLHVLQYROYHG · :HKDYHQRELDVZLWKUHVSHFWWRWKHSURSHUW\WKDWLVWKHVXEMHFWRIWKLVUHSRUWRUWRWKHSDUWLHV LQYROYHGZLWKWKLVDVVLJQPHQW · 2XUHQJDJHPHQWLQWKLVDVVLJQPHQWZDVQRWFRQWLQJHQWXSRQGHYHORSLQJRUUHSRUWLQJSUHGH WHUPLQHGUHVXOWV · 2XUFRPSHQVDWLRQIRUFRPSOHWLQJWKLVDVVLJQPHQWLVQRWFRQWLQJHQWXSRQWKHGHYHORSPHQWRU UHSRUWLQJRIDSUHGHWHUPLQHGYDOXHRUGLUHFWLRQLQYDOXHWKDWIDYRUVWKHFDXVHRIWKHFOLHQWWKH DPRXQWRIWKHYDOXHRSLQLRQWKHDWWDLQPHQWRIDVWLSXODWHGUHVXOWRUWKHRFFXUUHQFHRIDVXE VHTXHQWHYHQWGLUHFWO\UHODWHGWRWKHLQWHQGHGXVHRIWKLVDSSUDLVDO · 2XUDQDO\VHVRSLQLRQVDQGFRQFOXVLRQVZHUHGHYHORSHGDQGWKLVUHSRUWKDGEHHQSUHSDUHG LQFRQIRUPLW\ZLWKWKH8QLIRUP6WDQGDUGVRI3URIHVVLRQDO$SSUDLVDO3UDFWLFH 863$3 · ,&ODUNH7*RVHWKDYHPDGHDSHUVRQDOLQVSHFWLRQRIWKHSURSHUW\WKDWLVWKHVXEMHFWRIWKLV UHSRUW · ,.LPEHUO\$%ORFNKDYHQRWPDGHDSHUVRQDOLQVSHFWLRQRIWKHSURSHUW\WKDWLVWKHVXEMHFW RIWKLVUHSRUWEXWKDYHFRQWULEXWHGVLJQLILFDQWO\WRWKLVUHSRUWDQGLWVILQGLQJV EXECUTIVE SUMMARY &HUWLILFDWLRQ 24 Item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³UHDGLO\ DFKLHYDEOH´DUH H[FHSWHG $ QHZ EXLOGLQJ FRPSOHWHG DIWHU PXVWFRPSO\WR$'$DQGDQ\DOWHUDWLRQVWRDQH[LVWLQJEXLOGLQJPXVWFRPSO\ZLWK $'$WRWKHPD[LPXPH[WHQWSRVVLEOH 7KHJXLGHOLQHVUHTXLUHDFFHVVLELOLW\IRUWKRVHFRQILQHGWRZKHHOFKDLUVDQGWKRVHZLWKVLJKWKHDU LQJDQGRWKHULPSDLUPHQWV$'$VHWVPLQLPXPVWDQGDUGVIRUDFFHVVLELOLW\WRLQFOXGHEXWQLWOLP LWHGWRURXWHVRIWUDYHOHQWUDQFHVGRRUVUDPSVVWDLUVIORRUVXUIDFHVUHVWURRPVDQGSKRQHV EXECUTIVE SUMMARY *HQHUDO/LPLWLQJ&RQGLWLRQV $PHULFDQVZLWK'LVDELOLWLHV$FW 25 Item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tem 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 Description of subject property- Overview Source: Regional Multiple Listing Service 27 Item 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 Description of subject property- Overview 28 Item 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 Description of subject property- Overview 29 Item 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 Description of subject property- Overview 30 Item 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 Description of subject property- Overview 31 Item 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 Description of subject property- Overview 32 Item 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 Description of subject property- plat mapping 33 Item 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 Location mapping 34 Item 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 Zoning information 35 Item 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 Market Information 36 Item 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 Market Information 37 Item 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 Market Information 38 Item 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 Market Information 39 Item 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 Market Information 40 Item 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 Market Information 41 Item 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 Market Information 42 Item 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 Market Information 43 Item 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 Market Information 44 Item 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 Market Information 45 Item 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 Market Information 46 Item 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 Market Information 47 Item 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 Market Information 48 Item 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 Market Information 49 Item 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 Market Information 50 Item 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 Market Information 51 Item 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 Market Information 52 Item 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 Market Information 53 Item 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 Market Information 54 Item 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 Market Information 55 Item 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 Market Information 56 Item 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 Market Information 57 Item 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 Market Information 58 Item 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 Market Information 59 Item 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 Market Information 60 Item 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 Market Information 61 Item 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 Market Information 62 Item 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 Market Information 63 Item 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 Market Information-Neighborhood Information 64 Item 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 Market Information-Neighborhood Information 65 Item 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 Market Information-Neighborhood Information 66 Item 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 Market Information-Neighborhood Information 67 Item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³WHDUGRZQ´SURSHUWLHVIURPWKHVXEMHFW¶V PDUNHWSODFHZLWKWKHVDPHW\SHRIFRPPHUFLDOORFDWLRQDVWKHVXEMHFWSURSHUW\KDYHEHHQUHYLHZHGWR HVWDEOLVKDYDOXDWLRQRQDSHUVTXDUHIRRWEDVLVIRUWKHVXEMHFWVLWH 7KHPHWKRGXWLOL]HGLVDUHFRJQL]HGDSSUDLVDOYDOXDWLRQWHFKQLTXHDQGH[SODLQHGKHUHLQZLWKWKHFDOFX ODWLRQVVKRZQRQDQDFFRPSDQ\LQJFKDUW7KLVPHWKRGHVWDEOLVKHVDSRLQWRIYDOXH7KXVDIXOO\DF FUHGLWHGPHWKRGLVXVHGIRUHVWLPDWLQJWKHVXEMHFWVFXUUHQWODQGYDOXH Overview of the valuation process 7KH'LUHFW6DOHV&RPSDULVRQRU0DUNHW$SSURDFK 7KH5HFRQVWUXFWLRQ$SSURDFK 68 Item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verview of the valuation process 7KH,QFRPH$SSURDFK–1RW8WLOL]HGZLWKLQWKLVDSSUDLVDO 5HFRQFLOLDWLRQRI9DOXHV $GGLWLRQDO&RPPHQWV 69 Item 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 7KHDSSOLFDWLRQRIWKLVDSSURDFKLVEDVHGSULPDULO\RQWKHSULQFLSOHRIVXEVWLWXWLRQZKLFKLQGLFDWHV WKDWLQIRUPHGSXUFKDVHUVZRXOGEHQRPRUHIRUWKHSURSHUW\WKHQWKHFRVWWRWKHPREWDLQLQJFRP SDUDEOHFRPSHWLWLYHSURSHUW\ZLWKWKHVDPHXWLOLW\RQWKHRSHQPDUNHW7KHPDUNHWDSSURDFKLV EDVHGRQWKHSULQFLSOHRIVXEVWLWXWLRQ7KLVSULQFLSOHVWDWHVWKDW³ZKHQDSURSHUW\LVUHSODFHDEOHLQ WKHPDUNHWLWVYDOXHWHQGVWREHVHWE\WKHFRVWRIDFTXLULQJDQHTXDOO\GHVLUDEOHVXEVWLWXWHSURSHU W\DVVXPLQJQRFRVWO\GHOD\LQPDNLQJWKHVXEVWLWXWLRQ´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arket Approach—Utilized in Extraction Method 70 Item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arket Approach—Utilized in Extraction Method 71 Item 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 Market Approach—Utilized in Extraction Method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tem 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 Market Approach—Utilized in Extraction Method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tem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· 6HOHFW DSSURSULDWH YDOXH LQGLFDWRUV DUH DVVLJQHG IRU HDFK FRPSDUDEOH GHSHQGLQJ RQ PDUNHW QRUPV$SSURSULDWHYDOXHLQGLFDWRUZLOOEHGHULYHGEDVHGXSRQWKHDFWLRQVRIEX\HUVDQGVHOOV LQWKHPDUNHWSODFH · ,IWKHFRPSDUDEOHSURSHUW\LVVXSHULRUWRWKHVXEMHFWLQWHUPVRIWKHLGHQWLILHGIDFWRUVDGRZQ ZDUGSHUFHQWDJHDGMXVWPHQWLVPDGHWRWKHFRPSDUDEOH · ,IWKHFRPSDUDEOHSURSHUW\LVLQIHULRUWRWKHVXEMHFWUHJDUGLQJDFHUWDLQFKDUDFWHULVWLFWKHFRP SDUDEOHLVDGMXVWHGXSZDUG · &XPXODWLYHSHUFHQWDJHDGMXVWPHQWVIRUHDFKRIWKHFRPSDUDEOHVDUHVXPPHGZKLFKSURYLGHVD WRWDOQHWDGMXVWPHQWZKLFKLVWKHQPXOWLSOLHGE\WKHFDVKHTXLYDOHQWVDOHSULFHWRLQGLFDWHDQDS SURSULDWHYDOXHIDFWRUIRUWKHVXEMHFW ·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· 3URSHUW\5LJKWV&RQYH\HG-,WLVYHU\LPSRUWDQWWRFRQVLGHUWKHSURSHUW\LQWHUHVWFRQYH\HGLQD FRPPHUFLDOWUDQVDFWLRQ,QDPDMRULW\RIFRPSDUDEOHVDOHVWUDQVDFWLRQVWKHIHHVLPSOHLQWHUHVW LVFRQYH\HGZKHUHE\WKHVHOOHUVHFXUHVDOOULJKWVLQWKHUHDOHVWDWH7KLVOLPHLWHPDGMXVWPHQW Market Approach—Land and Building 74 Item 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 KDVEHHQSUHVHQWHGLQWKHHYHQWKDWWKHVHOOHUUHWDLQVVRPHRZQHUVKLSULJKWVRUDWKLUGSDUW\KDV VRPHIRUPRIRZQHUVKLSLQWHUHVW&HUWDLQSURSHUW\LQWHUHVWVWKDWZRXOGEHFRQVLGHUVLQWKLVDG MXVWPHQWZRXOGLQFOXGHDQ\UHWDLQHGRZQHUVKLSULJKWVE\WKHVHOOHUHDVHPHQWVRUUHVWULFWLRQV WKDWKDYHDVLJQLILFDQWLPSDFWRQWKHPDUNHWDELOLW\RIWKHWLWOHRUDWHQDQW¶VOHDVHKROGLQWHUHVW,W LVLPSRUWDQWWRQRWHWKDWWKLVDSSUDLVDODVVLJQPHQWLVWRGHYHORSWKHHVWLPDWHRIWKHPDUNHWYDOXH RIWKHIHHVLPSOHLQWHUHVWDQGWKHUHIRUHLWLVQHFHVVDU\WRPDNHDQDGMXVWPHQWIRUDQ\WUDQVDFWLRQ ZKHQWRWDORZQHUVKLSULJKWVKDYHQRWEHHFRQYH\HG1R3URSHUW\5LJKWVDGMXVWPHQWVKDYHEHHQ PDGHWRWKHFRPSDUDEOHVXWLOL]HGGXHWRDOOFRPSDUDEOHVEHLQJMXGJHGHTXDOWRWKHVXEMHFW ·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·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· 0DUNHW&RQGLWLRQV-0DUNHWLQJFRQGLWLRQVZHUHQRWDGMXVWHGDOOFRPSDUDEOHVXWLOL]HGZHUH WKRXJKWUHIOHFWLYHRIWKHHIIHFWLYHGDWHRIWKLVDSSUDLVDO · /RFDWLRQGLIIHUHQWLDOV-7KHORFDWLRQGLIIHUHQWLDODGMXVWPHQWVDUHXWLOL]HGWRHTXDOL]HWKHFRPSDUDEOHV XWLOL]HGDQGWKHVXEMHFWSURSHUW\RQIDFWRUVVXFKSUR[LPLW\WRHPSOR\PHQWWUDQVSRUWDWLRQPHDQDQG DYHUDJHKRXVLQJSULFLQJDURXQGWKHLPPHGLDWHDUHDDQGGHPDQGIRUKRXVLQJVWRFN7KHVHDGMXVW PHQWVWHQGWRE\DPELJXRXVDQGDUHKDUGWRGHILQHE\PDUNHWWUDQVDFWLRQV7KHDSSUDLVHUVDSSOLHG DGMXVWPHQWVPRVWO\EDVHGRQH[SHULHQFHFRQYHUVDWLRQVZLWKGHYHORSHUVDQG&LW\DQG&RXQW\RIIL FLDOVDGMXVWPHQWVDSSOLHGZHUHQRWHGRQWKHFRPSDUDEOHJULG Market Approach—land and building 75 Item 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 · &RQFHVVLRQVZHUHDGMXVWHGSHUFRPSDUDEOHDQGQRWHGRQWKHFRPSDUDEOHJULG · 3DUFHOVL]HGLIIHUHQWLDOVZHUHDGMXVWHGLIWKHGLIIHUHQWLDOZDVFRQVLGHUHGVLJQLILFDQWDQGZHUHQRWHGRQ WKHFRPSDUDEOHJULG · $JHGLIIHUHQWLDOVZHUHQRWDGMXVWHGGXHWRDOOFRPSDUDEOHVEHLQJMXGJHGHTXDOWRWKHVXEMHFW'LIIHUHQ WLDOVLQHIIHFWLYHDJHZHUHDGGUHVVHGLQFRQGLWLRQDODGMXVWPHQWV · &RQGLWLRQDOGLIIHUHQWLDOVZHUHMXGJHGSHUFRPSDUDEOHDQGQRWHGRQWKHFRPSDUDEOHJULG 7KHFRPSDUDEOHJULGVDUHORFDWHGRQWKHQH[WSDJHV$OOFRPSDUDEOHXWLOL]HGZHUHWKRXJKWZHOOPDWHG WRWKHVXEMHFWSURSHUW\7KHFRPSDUDEOHVZHUHPHDVXUHGRQDERYHJUDGHVTXDUHIRRWDJHZLWKFRQVLG HUDWLRQRIEHORZJUDGHLIDQ\H[LVWHG %HORZDUHWKHGHVFULSWLYHVWDWLVWLFVRIWKHFRPSDUDEOHEDVHEHIRUHDQGDIWHUDGMXVWPHQWVZHUHDSSOLHG $OOFRPSDUDEOHVZHUHFRQVLGHUHGWKHEHVWPDWHGFRPSDUDEOHVDYDLODEOH7KHUDQJHLQLQGLFDWHGYDOXHV ZDVVLJQLILFDQWO\UHGXFHGDIWHUDGMXVWPHQWVZHUHDSSOLHG*LYLQJFRQVLGHUDWLRQWRWKHEHVWPDWHGFRP SDUDEOHVWKHLQGLFDWHGYDOXHIRXQGKHUHLQLVSHUVTXDUHIRRW$SSO\LQJSHUVTXDUHIRRWWRWKH VXEMHFW¶VVTXDUHIHHW\LHOGVDURXQGHGSRWHQWLDOYDOXHRIDQGLVWKHYDOXHIRXQGXWLOL] LQJWKHPDUNHWDSSURDFKIRUWKHEXLOGLQJSOXVWKHODQG7KHFRPSDUDEOHJULGLVORFDWHGRQWKHQH[W SDJHZLWKWKHVDOLHQWGDWDIROORZLQJ7KLVYDOXHLVIRUWKHEXLOGLQJDQGWKHODQG$QDGGLWLRQDOPDUNHW DSSURDFKZDVGRQHIRUWKHODQGYDOXH Market Approach—land and building 'HVFULSWLYH6WDWLVWLFVRIWKH&RPSDUDEOH%DVH%()25( $GMXVWPHQWVZHUH$SSOLHG 'HVFULSWLYH6WDWLVWLFVRIWKH&RPSDUDEOH%DVH$)7(5$G MXVWPHQWVZHUH$SSOLHG DĞĂŶ ϲϲ͘ϴϯ DĞĂŶ ϱϵ͘ϴϯ ^ƚĂŶĚĂƌĚƌƌŽƌ ϯ͘ϱϯ ^ƚĂŶĚĂƌĚƌƌŽƌ Ϭ͘ϴϯ DĞĚŝĂŶ ϲϱ͘ϭϬ DĞĚŝĂŶ ϱϵ͘ϲϵ DŽĚĞ ϲϭ͘ϲϱ DŽĚĞ ηEͬ ^ƚĂŶĚĂƌĚĞǀŝĂƟŽŶ ϵ͘ϵϵ ^ƚĂŶĚĂƌĚĞǀŝĂƟŽŶ ϭ͘ϲϳ ^ĂŵƉůĞsĂƌŝĂŶĐĞ ϵϵ͘ϳϯ ^ĂŵƉůĞsĂƌŝĂŶĐĞ Ϯ͘ϳϴ <ƵƌƚŽƐŝƐ ;ϭ͘ϬϴͿ <ƵƌƚŽƐŝƐ ;ϰ͘ϲϭͿ ^ŬĞǁŶĞƐƐ Ϭ͘ϱϴ ^ŬĞǁŶĞƐƐ Ϭ͘ϭϵ ZĂŶŐĞ Ϯϱ͘Ϭϯ ZĂŶŐĞ ϯ͘ϯϵ DŝŶŝŵƵŵ ϱϲ͘Ϭϱ DŝŶŝŵƵŵ ϱϴ͘Ϯϳ DĂdžŝŵƵŵ ϴϭ͘Ϭϴ DĂdžŝŵƵŵ ϲϭ͘ϲϱ 76 Item 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 Market Approach– comparable grid Building and Land 6XEMHFW ŽŵƉĂƌĂďůĞ ϭ ŽŵƉĂƌĂďůĞ Ϯ ŽŵƉĂƌĂďůĞ ϯ ŽŵƉĂƌĂďůĞ ϰ 5HIHUHQFH1XPEHU 6XEMHFW ϰϵϭϯϯϰϳ ϰϲϬϵϮϮϰ ϰϰϯϮϵϮϲ ϰϬϬϳϮϵϰ 6WUHHW$GGUHVV WK$YHQXH1( ϰϯϬϬDĂŝŶ ^ƚE ϯϴϬϭEϯƌĚ ^ƚ ϯϲϯϴĞŶͲ ƚƌĂůǀĞE ϲϲϭϯϵƚŚ ǀĞE &LW\ &ROXPELD+HLJKWV &ƌŝĚůĞLJ DŝŶŶĞĂƉŽůŝƐ DŝŶŶĞĂƉŽůŝƐ ŽůƵŵďŝĂ ,ĞŝŐŚƚƐ &ORVHG'DWH 1$ ϵͬϭϵͬϮϬϭϵ ϭϮͬϭϴͬϮϬϭϴ ϳͬϮϬͬϮϬϭϴ ϴͬϯϭͬϮϬϭϳ 6DOH&RQGLWLRQ $VVXPHG7\SLFDO /ŶǀĞƐƚŵĞŶƚ dƌŝƉůĞEĞƚ $VNLQJ3ULFH 1$ ϭ͕ϯϬϬ͕ϬϬϬ ϰϰϵ͕ϵϬϬ ϴϳϱ͕ϬϬϬ ϯϮϱ͕ϬϬϬ 6ROG3ULFH 1$ Ψϭ͕ϮϱϬ͕ϬϬϬ ΨϰϰϬ͕ϵϬϬ Ψϴϱϱ͕ϬϬϬ ΨϮϴϯ͕ϱϬϬ 0DUNHWLQJ7LPH 1$ ϮϬϯ ϵϮ ϭϰϭ ϯϳ ^ĂůĞdLJƉĞ 1$ /ŶǀĞƐƚŵĞŶƚ KǁŶĞƌhƐĞƌ KǁŶĞƌhƐĞƌ /ŶǀĞƐƚŵĞŶƚ ŽƌKǁŶĞƌ hƐĞƌ 6HOOHU&RQWULEXWLRQ 1$ $GMXVWHG9DOXH ϭ͕ϮϱϬ͕ϬϬϬ ϭ͕ϮϱϬ͕ϬϬϬ ϰϰϬ͕ϵϬϬ ϰϰϬ͕ϵϬϬ ϴϱϱ͕ϬϬϬ ϴϱϱ͕ϬϬϬ Ϯϴϯ͕ϱϬϬ Ϯϴϯ͕ϱϬϬ &RQGLWLRQVRI6DOH $VVXPHG7\SLFDO $GMXVWHG9DOXH ϭ͕ϮϱϬ͕ϬϬϬ ϭ͕ϮϱϬ͕ϬϬϬ ϰϰϬ͕ϵϬϬ ϰϰϬ͕ϵϬϬ ϴϱϱ͕ϬϬϬ ϴϱϱ͕ϬϬϬ Ϯϴϯ͕ϱϬϬ Ϯϴϯ͕ϱϬϬ ([SHQGLWXUHV0DGH ,PPHGLDWH$IWHU3XU FKDVH $VVXPHG1RPLQDO $GMXVWHG9DOXH ϭ͕ϮϱϬ͕ϬϬϬ ϭ͕ϮϱϬ͕ϬϬϬ ϰϰϬ͕ϵϬϬ ϰϰϬ͕ϵϬϬ ϴϱϱ͕ϬϬϬ ϴϱϱ͕ϬϬϬ Ϯϴϯ͕ϱϬϬ Ϯϴϯ͕ϱϬϬ 0DUNHWLQJ&RQGLWLRQV &XUUHQW $GMXVWHG9DOXH ϭ͕ϮϱϬ͕ϬϬϬ ϭ͕ϮϱϬ͕ϬϬϬ ϰϰϬ͕ϵϬϬ ϰϰϬ͕ϵϬϬ ϴϱϱ͕ϬϬϬ ϴϱϱ͕ϬϬϬ Ϯϴϯ͕ϱϬϬ Ϯϴϯ͕ϱϬϬ &DVK(TXLYDOHQF\ 9DOXH%HIRUH3URSHUW\ $GMXVWPHQWV ϭ͕ϮϱϬ͕ϬϬϬ ϭ͕ϮϱϬ͕ϬϬϬ ϰϰϬ͕ϵϬϬ ϰϰϬ͕ϵϬϬ ϴϱϱ͕ϬϬϬ ϴϱϱ͕ϬϬϬ Ϯϴϯ͕ϱϬϬ Ϯϴϯ͕ϱϬϬ &DVK(TXLYDOHQF\ 9DOXH%HIRUH3URSHUW\ $GMXVWPHQWV 6T)7  Ψϲϭ͘ϲϱ Ψ ϲϭ͘ϲϱ Ψϲϴ͘ϱϱ Ψ ϲϴ͘ϱϱ Ψϴϭ͘Ϭϴ Ψ ϴϭ͘Ϭϴ Ψϱϲ͘Ϭϱ Ψ ϱϲ͘Ϭϱ WƌŽƉĞƌƚLJdLJƉĞ /LJKW,QGXVWULDO /ŶĚƵƐƚƌŝĂů /ŶĚƵƐƚƌŝĂů /ŶĚƵƐƚƌŝĂů /ŶĚƵƐƚƌŝĂů ƵŝůĚŝŶŐ^&  ϮϬ͕Ϯϳϱ ϲ͕ϰϯϮ ϭϬ͕ϱϰϱ ϱ͕Ϭϱϴ ^ĞĐŽŶĚĂƌLJdLJƉĞ /LJKW,QGXVWULDO DĂŶƵĨĂĐƚƵƌͲ ŝŶŐ tĂƌĞŚŽƵƐĞ tĂƌĞŚŽƵƐĞ tĂƌĞŚŽƵƐĞ zĞĂƌƵŝůƚ  ϭϵϱϰ ϭϵϱϭ ϭϵϱϱ ϭϵϴϱ >ĂŶĚƌĞĂ^&   ϰϯ͕ϱϲϬ͘ϬϬ  Ϭ͘ϮϬ ϭϭ͕ϳϲϭ͘ϬϬ ϭϲ͕ϱϱϮ͘ϬϬ ϭϬ͕Ϯϭϵ͘ϬϬ EƵŵďĞƌKĨ&ůŽŽƌƐ  ϭ ϭ Ϯ ϭ ŽŶŝŶŐ /LJKW,QGXVWULDO D-Ϯ / -Ϯ ŽŵŵĞƌĐŝĂů ƵŝůĚŝŶŐŽŶĚŝƟŽŶ *RRG ^ƵƉĞƌŝŽƌ -Ϭ͘ϭ ĚĞƋƵĂƚĞ ĚĞƋƵĂƚĞ ŽŶƐŝĚĞƌĞĚ /ŶĨĞƌŝŽƌ Ϭ͘ϭ ŽŶƐƚƌƵĐƟŽŶDĂƚĞƌŝĂů DĞƚĂůͬŽŶĐƌĞƚĞ^Ŭŝƌƚ DĂƐŽŶƌLJ -Ϭ͘ϭϱ DĂƐŽŶƌLJ -Ϭ͘ϭϱ DĂƐŽŶƌLJ -Ϭ͘ϭϱ DĞƚĂů &ůŽŽƌƌĞĂZĂƟŽ  Ϭ͘ϰϳ Ϭ͘ϱϱ Ϭ͘ϲϰ Ϭ͘ϰϵ &ƌŽŶƚĂŐĞ WKDQG-HIIHUVRQ ĞŶƚƌĂů -Ϭ͘ϭϬ EƵŵďĞƌKĨWĂƌŬŝŶŐ ^ƉĂĐĞƐ  ϯϬ ϭϬ Ϯϱ ϭϬ EƵŵďĞƌKĨdĞŶĂŶƚƐ  Ϯ ϭ ϭ >ŽĂĚŝŶŐŽĐŬƐ  ϭ ϭ EŽŶĞ EŽŶĞ dĞŶĂŶĐLJ 6LQJOH ϲ͘ϳϮ 1HW$GMXVWPHQW$PRXQW -ϱй -ϭϱй -Ϯϱй ϭϬй ,QGLFDWHG9DOXHRIWKH &RPSDUDEOH3HU6TIW         77 Item 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 Market Approach– comparable salient data Building and Land 78 Item 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 Market Approach– comparable salient data Building and Land 79 Item 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 Market Approach– comparable salient data Building and Land 80 Item 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 Market Approach– comparable salient data Building and Land 81 Item 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 Market Approach– Land Valuation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· 6HOHFW DSSURSULDWH YDOXH LQGLFDWRUV DUH DVVLJQHG IRU HDFK FRPSDUDEOH GHSHQGLQJ RQ PDUNHW QRUPV$SSURSULDWHYDOXHLQGLFDWRUZLOOEHGHULYHGEDVHGXSRQWKHDFWLRQVRIEX\HUVDQGVHOOVLQ WKHPDUNHWSODFH · ,IWKHFRPSDUDEOHSURSHUW\LVVXSHULRUWRWKHVXEMHFWLQWHUPVRIWKHLGHQWLILHGIDFWRUVDGRZQ ZDUGSHUFHQWDJHDGMXVWPHQWLVPDGHWRWKHFRPSDUDEOH · ,IWKHFRPSDUDEOHSURSHUW\LVLQIHULRUWRWKHVXEMHFWUHJDUGLQJDFHUWDLQFKDUDFWHULVWLFWKHFRPSD UDEOHLVDGMXVWHGXSZDUG ·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tem 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 Market Approach– Land Valuation 7KHIROORZLQJLVDEULHIGLVFXVVLRQUHJDUGLQJWKHDGMXVWPHQWVPDGHLQWKLVDQDO\VLV ·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¶VOHDVHKROGLQWHUHVW,WLVLP SRUWDQWWRQRWHWKDWWKLVDSSUDLVDODVVLJQPHQWLVWRGHYHORSWKHHVWLPDWHRIWKHPDUNHWYDOXHRIWKH IHHVLPSOHLQWHUHVWDQGWKHUHIRUHLWLVQHFHVVDU\WRPDNHDQDGMXVWPHQWIRUDQ\WUDQVDFWLRQZKHQ WRWDORZQHUVKLSULJKWVKDYHQRWEHHQFRQYH\HG1R3URSHUW\5LJKWVDGMXVWPHQWVKDYHEHHQPDGH WRWKHFRPSDUDEOHVXWLOL]HGGXHWRDOOFRPSDUDEOHVEHLQJMXGJHGHTXDOWRWKHVXEMHFW ·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·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· 0DUNHW&RQGLWLRQV-0DUNHWLQJFRQGLWLRQVZHUHQRWDGMXVWHG$OOFRPSDUDEOHVXWLOL]HGZHUH WKRXJKWUHIOHFWLYHRIWKHHIIHFWLYHGDWHRIWKLVDSSUDLVDO · /RFDWLRQGLIIHUHQWLDOV-7KHORFDWLRQGLIIHUHQWLDODGMXVWPHQWVDUHXWLOL]HGWRHTXDOL]HWKHFRPSDUDEOHV XWLOL]HGDQGWKHVXEMHFWSURSHUW\RQIDFWRUVVXFKSUR[LPLW\WRHPSOR\PHQWHGXFDWLRQDQGUHFUHDWLRQDO 83 Item 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 Market Approach– Land Valuation YHQXHVPHDQDQGDYHUDJHKRXVLQJSULFLQJDURXQGWKHLPPHGLDWHDUHDDQGGHPDQGIRUKRXVLQJVWRFN 7KHVHDGMXVWPHQWVWHQGWREHDPELJXRXVDQGDUHKDUGWRGHILQHE\PDUNHWWUDQVDFWLRQV7KHDSSUDLVHUV DSSOLHGDGMXVWPHQWVPRVWO\EDVHGRQH[SHULHQFHFRQYHUVDWLRQVZLWKGHYHORSHUVDQG&LW\DQG&RXQW\ RIILFLDOV,IDGMXVWPHQWVZHUHPDGHWKHUHDVRQIRUVXFKZDVQRWHGRQWKHFRPSDUDEOHJULG7KHPRVW VLJQLILFDQWUHDVRQIRUORFDWLRQDODGMXVWPHQWVZDVEDVHGRQV\QHUJ\DURXQGWKHVXEMHFWDQGWKHFRPSD UDEOHV &RQFHVVLRQVZHUHDGMXVWHGSHUFRPSDUDEOHDQGQRWHGRQWKHFRPSDUDEOHJULG $OOFRPSDUDEOHVDUHWKRXJKWUHDVRQDEO\PDWHGWRWKHVXEMHFWSURSHUW\WKDWZHUHDYDLODEOH&RPSDUDEOH WKUHHLVFRQVLGHUHGWKHEHVWPDWHGFRPSDUDEOHDQGLVWKHEDVLVRIWKLVYDOXDWLRQ %HORZDUHWKHGHVFULSWLYHVWDWLVWLFVRIWKHFRPSDUDEOHEDVHSULFHSHUVTXDUHIRRWEHIRUHDQGDIWHUDGMXVW PHQWVZHUHDSSOLHG7KHUDQJHRILQGLFDWHGYDOXHVZDVVLJQLILFDQWO\UHGXFHGDIWHUDGMXVWPHQWVZHUHDS SOLHG 7KHSUREDEOHPDUNHWYDOXHIRXQGKHUHLQLVEDVHGRQSHUVTXDUHIRRWDVLQGLFDWHGWKHFRPSDUDEOH EDVH7KXVPXOWLSOLHGE\WKHVXEMHFW¶VVTXDUHIHHW\LHOGVDURXQGHGSRWHQWLDOPDUNHWYDOXH RIURXQGHG7KLVYDOXDWLRQLVIRUWKHODQGRQO\ 7KHQH[WSDJHLVWKHFRPSDUDEOHJULG DĞĂŶ ϴ͘Ϭϴ DĞĂŶ ϱ͘ϲϯ ^ƚĂŶĚĂƌĚƌƌŽƌ Ϯ͘Ϭϱ ^ƚĂŶĚĂƌĚƌƌŽƌ Ϭ͘ϭϳ DĞĚŝĂŶ ϲ͘ϱϴ DĞĚŝĂŶ ϱ͘ϲϬ DŽĚĞ ηEͬ DŽĚĞ ηEͬ ^ƚĂŶĚĂƌĚĞǀŝĂƟŽŶ ϯ͘ϱϰ ^ƚĂŶĚĂƌĚĞǀŝĂƟŽŶ Ϭ͘Ϯϵ ^ĂŵƉůĞsĂƌŝĂŶĐĞ ϭϮ͘ϱϳ ^ĂŵƉůĞsĂƌŝĂŶĐĞ Ϭ͘Ϭϵ <ƵƌƚŽƐŝƐ η/sͬϬ͊ <ƵƌƚŽƐŝƐ η/sͬϬ͊ ^ŬĞǁŶĞƐƐ ϭ͘ϱϲ ^ŬĞǁŶĞƐƐ ϭ͘ϲϮ ZĂŶŐĞ ϲ͘ϲϬ ZĂŶŐĞ Ϭ͘ϱϰ DŝŶŝŵƵŵ ϱ͘ϱϯ DŝŶŝŵƵŵ ϱ͘ϱϯ DĂdžŝŵƵŵ ϭϮ͘ϭϯ DĂdžŝŵƵŵ ϲ͘Ϭϲ 'HVFULSWLYH6WDWLVWLFVRIWKH&RPSDUDEOH%DVH %()25($GMXVWPHQWVZHUH$SSOLHG 3ULFHSHU6T)W 'HVFULSWLYH6WDWLVWLFVRIWKH&RPSDUDEOH%DVH $)7(5$GMXVWPHQWVZHUH$SSOLHG 3ULFHSHU6T)W 84 Item 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 Market Approach– Land Valuation ^ƵďũĞĐƚ ŽŵƉĂƌĂďůĞϭ ĚũƵƐƚŵĞŶƚ ŽŵƉĂƌĂďůĞϮ ĚũƵƐƚŵĞŶƚ ŽŵƉĂƌĂďůĞϯ ĚũƵƐƚŵĞŶƚ ŽŵƉ/ ϱϯϯϱϴϴϮ ϰϭϭϭϭϵϰ ϰϬϳϳϳϬϰ WƌŽƉĞƌƚLJĚĚƌĞƐƐ ϲϮϳϯϴƚŚǀĞŶƵĞE ϯϳϮϱ^ƟŶƐŽŶůǀĚ ϰϯϰϬE>LJŶĚĂůĞ ǀĞ;WĂƌƚŽĨ ϭϬϲϵ'ƌĂŶĚǀŝĞǁ tĂLJ WƌŽƉĞƌƚLJŝƚLJ ŽůƵŵďŝĂ,ĞŝŐŚƚƐ ^ĂŝŶƚŶƚŚŽŶLJ DŝŶŶĞĂƉŽůŝƐ ŽůƵŵďŝĂ,ĞŝŐŚƚƐ WĂƌĐĞůEƵŵďĞƌϭ;DŝŶͿ ϯϱ-ϯϬ-Ϯϰ-ϰϯ-ϬϬϬϵ ϯϭ-ϯϬ-Ϯϯ-ϯϯ-ϬϮϬϵ Ϭϯ-ϬϮϵ-Ϯϰ-ϮϮ- ϬϬϯϬ Ϯϱ-ϯϬ-Ϯϰ-ϯϮ-ϬϬϲϰ WĂƌĐĞůEƵŵďĞƌϮ;DĂdžͿ ϯϭ-ϯϬ-Ϯϯ-ϯϯ-ϬϮϬϵ Ϭϯ-ϬϮϵ-Ϯϰ-ϮϮ- ϬϬϯϬ Ϯϱ-ϯϬ-Ϯϰ-ϯϮ-ϬϬϳϮ ^ĂůĞĂƚĞ EŽƚDĂƌŬĞƚĞĚ ϭϭͬϮϳͬϮϬϮϬ ϭͬϱͬϮϬϭϴ ϭϮͬϴͬϮϬϭϳ ^ĂůĞ^ƚĂƚƵƐ EŽƚDĂƌŬĞƚĞĚ ^ŽůĚ ^ŽůĚ ^ŽůĚ ^ĂůĞWƌŝĐĞ EŽƚDĂƌŬĞƚĞĚ ϰϲϮϱϬϬ ΨϭϬϴ͕ϵϴϰ Ψϭ͕ϮϬϬ͕ϬϬϬ ƐŬŝŶŐWƌŝĐĞ EŽƚDĂƌŬĞƚĞĚ ϭ͕ϴϬϬ͕ϬϬϬ DĂƌŬĞƚdŝŵĞ EŽƚDĂƌŬĞƚĞĚ ϯϲϭ ϴϯϳ ^ĂůĞWƌŝĐĞŽŵŵĞŶƚ EŽƚDĂƌŬĞƚĞĚ ůůŽĐĂƚĞĚ ŽŶĮƌŵĞĚ ,ŽůĚWĞƌŝŽĚ ϯϴzĞĂƌƐ ϯϰDŽŶƚŚƐ ϯϰDŽŶƚŚƐ ^ĂůĞŽŶĚŝƟŽŶ EŽƚDĂƌŬĞƚĞĚ ƵůŬͬWŽƌƞŽůŝŽ ^ĂůĞ ^ĂůĞdLJƉĞ EŽƚDĂƌŬĞƚĞĚ KǁŶĞƌhƐĞƌ /ŶǀĞƐƚŵĞŶƚ /ŶǀĞƐƚŵĞŶƚ ^ĐĂůĞ DƵŶŝĐŝƉĂů /ŶĚĞƉĞŶĚĞŶƚ /ŶĚĞƉĞŶĚĞŶƚ /ŶĚĞƉĞŶĚĞŶƚ dŽƚĂůdžƉĞŶƐĞŵŽƵŶƚ hŶŬŶŽǁŶ ϭϯ͕ϱϯϴ͘ϬϬ ϴ͕ϲϳϬ͘ϱϮ ĂƐŚƋƵŝǀĂůĞŶĐLJsĂůƵĞ ϰϰϴ͕ϵϲϮ͘ϬϬ ϭϬϴ͕ϵϴϰ͘ϬϬ ϭ͕ϭϵϭ͕ϯϮϵ͘ϰϴ ĂƐŚƋƵŝǀĂůĞŶĐLJsĂůƵĞWĞƌ ^Ƌ&ƚ ϭϮ͘ϭϮϱϱϴϳϰϯ ϲ͘ϱϴϰϯϰϬϮϲϭ ϱ͘ϱϮϱϬϴϯϭϱϱ WƌŽƉĞƌƚLJdLJƉĞ >ĂŶĚ >ĂŶĚ >ĂŶĚ >ĂŶĚ >ĂŶĚƌĞĂ Ϭ͘ϳϰ Ϭ͘ϴϱ Ϭ͘ϯϴ ϰ͘ϵϱ Ϭ͘ϯϬ >ĂŶĚƌĞĂ^& ϮϬϰϵϬ ϯϳϬϮϲ ϭϲϱϱϮ ϮϭϱϲϮϮ WƌŽƉĞƌƚLJEĂŵĞ ŽŶŝŶŐ Žŵŵͬ/ŶĚ Žŵŵͬ/ŶĚ Žŵŵͬ/ŶĚ Dy &ƌŽŶƚĂŐĞ ϯϴƚŚĂŶĚ:ĞīĞƌƐŽŶ ^ƟŶƐŽŶ -Ϭ͘ϭ >LJŶĚĂůĞ -Ϭ͘ϭ /ŵƉƌŽǀĞŵĞŶƚZĂƟŽ ϳϵ͘ϰϰ Ϭ͘ϬϬ WƌŽƉŽƐĞĚhƐĞ /ŶĚƵƐƚƌŝĂů ŽŵŵĞƌĐŝĂů͕/ŶĚƵƐͲ ƚƌŝĂů͕DƵůƟ&ĂŵŝůLJ -Ϭ͘ϯ ŽŵŵĞƌĐŝĂů͕ DƵůƟ&ĂŵŝůLJ -Ϭ͘Ϭϱ ŽŵŵĞƌĐŝĂů͕ DƵůƟ&ĂŵŝůLJ͕ KĸĐĞ͕ZĞƚĂŝů -Ϭ͘ϯ ^ŝƚĞ^ƉĞĐŝĮĐƐZĞƋƵŝƌŝŶŐĚͲ ũƵƐƚŵĞŶƚƐ ƌĞĂŽĨƐŝŐŶŝĮĐĂŶƚ ^LJŶĞƌŐLJ -Ϭ͘ϭ EĞƚĚũƵƐƚŵĞŶƚ -Ϭ͘ϱ -Ϭ͘ϭϱ Ϭ /ŶĚŝĐĂƚĞĚWƌŝĐĞƉĞƌ^Ƌ&ƚ Ψϲ͘Ϭϲ Ψϱ͘ϲϬ Ψϱ͘ϱϯ 85 Item 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 Determination of Building Value though market approach for land and building and land only value 7KHWZRSUHYLRXVPDUNHWDSSURDFKIRFXVHGRQWKHEXLOGLQJDQGODQGDQGWKHQMXVWWKHODQGYDOXH7KHYDOXHV IRXQGKHUHLQXWLOL]LQJWKHVHDSSURDFKHVZHUHDVIROORZV 7KHYDOXHIRUWKHEXLOGLQJDQGWKHODQG  7KHYDOXHIRUWKHODQGRQO\  'LIIHUHQWLDO  7KLVLOOXVWUDWHVWKDWWKHEXLOGLQJLVRIIHULQJDFRQWULEXWRU\YDOXHWRWKHODQGRIDQGWKXVLVWKHYDOXH IRXQGIRUWKHEXLOGLQJRQO\LQWKLVDQDO\VLV 86 Item 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 Reconstruction cost approach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tem 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 Reconstruction cost approach. DSSUDLVHUVXWLOL]H0DUVKDO6ZLIWIRUWKHFRVWLQJXWLOL]HGKHUHLQ7KHGHSUHFLDWLRQDVLQGLFDWHGLVUH ODWHGWRWKHDSSUDLVHU¶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³DJH-OLIH´FRQFHSWLVWKHGHSUHFLDWLRQWHFKQLTXHXVHGLQFRQMXQF WLRQZLWKSK\VLFDOGHSUHFLDWLRQ8QGHUWKDWFRQFHSWWKHSHUFHQWRIGHSUHFLDWLRQLVHTXDOWRWKHUDWLRQ RIWKHHIIHFWLYHDJHRIDQGWKHRYHUDOOH[SHFWDEOHHFRQRPLFOLIHRI\HDUVZRXOGKDYHDGHSUHFL DWLRQRI ³2EVROHVFHQFH´LVPRUHGLIILFXOWWRHYDOXDWHDQGGHILQH2EVROHVFHQFHLVGLYLGHGLQWRWZRSDUWV ³)XQFWLRQDO´DQG³(FRQRPLF´ ³)XQFWLRQDO´REVROHVFHQFHLVDORVVRIYDOXHGXHWRWKHLQDELOLW\RIWKHDVVHWWRSHUIRUPLWVIXQFWLRQDV HIILFLHQWO\DVLWVUHSODFHPHQW$QH[DPSOHRIWKLVPLJKWEHWKHQHZIDVWUHFRYHU\KRWZDWHUKHDWHUV ZKLFKDUHUHSODFLQJWKHROG7KHQHZZDWHUKHDWHUVDUHVPDOOHUDQGPRUHHIILFLHQW ³(FRQRPLF´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tem 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 Reconstruction cost approach. BILDING COST: &RVWLQJDVVRFLDWHGZLWKWKLVDSSURDFKZDVGHULYHGIURP0DUVKDOODQG6ZLIW0DUVKDOODQG6ZLIWXWL OL]HVRULJLQDOFRQVWUXFWLRQRFFXSDQF\DQGDYHUDJHFRVWRIEXLOGLQJVZLWKVLPLODURFFXSDQFLHV7KH VXEMHFWEXLOGLQJZDVFODVVLILHGDVDVWRUDJHZKHUHKRXVH7KHFRVWLQJKHUHLQIURP0DUVKDODQG6ZLIW DQGLVVXSSRUWHGLQSDUWE\WKHVXEMHFW¶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tem 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 Reconstruction cost approach. ŽƌĞ>ŽŐŝĐ-^ǁŝŌƐƟŵĂƚŽƌ ŽŵŵĞƌĐŝĂůƐƟŵĂƚŽƌ-ĞƚĂŝůĞĚZĞƉŽƌƚ 'ĞŶĞƌĂů/ŶĨŽƌŵĂƟŽŶ ƐƟŵĂƚĞ/͗ ϲϮϳϯϴƚŚǀĞŶƵĞE͕ŽůƵŵͲ ďŝĂ,ĞŝŐŚƚƐ ĂƚĞƌĞĂƚĞĚ͗ ϱͬϳͬϮϬϮϭ WƌŽƉĞƌƚLJKǁŶĞƌ͗ ŝƚLJŽĨŽůƵŵďŝĂ,ĞŝŐŚƚƐ WƌŽƉĞƌƚLJĚĚƌĞƐƐ͗ ϲϮϳϯϴƚŚǀĞŶƵĞE ĂƚĞĂůĐƵůĂƚĞĚ͗ ϱͬϳͬϮϬϮϭ ŽůƵŵďŝĂ,ĞŝŐŚƚƐ͕DEϱϱϰϮϭ >ŽĐĂůDƵůƟƉůŝĞƌ͗ ϭ͘ϭϱ ŽƐƚĂƚĂƐKĨ͗ DĂLJ-Ϯϭ ƌĞĂ ϲϱϬϬ ^ƚŽƌŝĞƐŝŶ^ĞĐƟŽŶ ϭ ^ƚŽƌŝĞƐŝŶƵŝůĚŝŶŐ ϭ ^ŚĂƉĞ ƌĞĐƚĂŶŐƵůĂƌ WĞƌŝŵĞƚĞƌ ;ĂƵƚŽ-ĐĂůĐͿ īĞĐƟǀĞŐĞ Ϯϰ KĐĐƵƉĂŶĐLJ й ůĂƐƐ ,ĞŝŐŚƚ YƵĂůŝƚLJ ϰϬϲ^ƚŽƌĂŐĞtĂƌĞŚŽƵƐĞ ϭϬϬ W ϭϲ ϯ KĐĐƵƉĂŶĐLJdŽƚĂůWĞƌͲ ĐĞŶƚĂŐĞ ϭϬϬ ^LJƐƚĞŵ͗džƚĞƌŝŽƌtĂůůƐ йͬhŶŝƚƐ YƵĂůŝƚLJ ĞƉƌ й KƚŚĞƌ ϴϭϱdžƚĞƌŝŽƌtĂůůƐ͗ ŽŶĐƌĞƚĞůŽĐŬ͕dĞdžͲ ƚƵƌĞĚ&ĂĐĞ ϱϬ KĐĐ͘ dŽƚĂůWĞƌĐĞŶƚĨŽƌdžƚĞƌŝͲ ŽƌtĂůůƐ͗ ϱϬ hŶŝƚƐ hŶŝƚŽƐƚ dŽƚĂůŽƐƚ EĞǁ >ĞƐƐĞƉƌĞͲ ĐŝĂƟŽŶ dŽƚĂůŽƐƚ ĞƉƌĞĐŝĂƚĞĚ ĂƐŝĐ^ƚƌƵĐƚƵƌĞ ĂƐĞŽƐƚ ϲ͕ϱϬϬ Ψϱϱ͘ϳϬ ΨϯϲϮ͕ϬϱϬ Ψϭϰϰ͕ϴϮϬ ΨϮϭϳ͕ϮϯϬ džƚĞƌŝŽƌtĂůůƐ ϯ͕ϮϱϬ ΨϮϰ͘Ϯϳ Ψϳϴ͕ϴϳϴ Ψϯϭ͕ϱϱϭ Ψϰϳ͕ϯϮϳ ,ĞĂƟŶŐΘŽŽůŝŶŐ ϲ͕ϱϬϬ Ψϱ͘ϭϱ Ψϯϯ͕ϰϳϱ Ψϭϯ͕ϯϵϬ ΨϮϬ͕Ϭϴϱ ĂƐŝĐ^ƚƌƵĐƚƵƌĞŽƐƚ ϲ͕ϱϬϬ ΨϳϮ͘ϵϵ Ψϰϳϰ͕ϰϬϯ Ψϭϴϵ͕ϳϲϭ ΨϮϴϰ͕ϲϰϮ >ĞƐƐĞƉƌĞĐŝĂƟŽŶ WŚLJƐŝĐĂůΘ&ƵŶĐƟŽŶĂů ϰϬ͘ϬϬй Ψϭϴϵ͕ϳϲϭ ΨϮϴϰ͕ϲϰϮ ĞƉƌĞĐŝĂƚĞĚŽƐƚ ϲ͕ϱϬϬ Ψϰϯ͘ϳϵ Ψϭϴϵ͕ϳϲϭ ΨϮϴϰ͕ϲϰϮ ŽƐƚĚĂƚĂďLJŽƌĞ>ŽŐŝĐ͕/ŶĐ͘ 90 Item 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 Pictures of site-exterior 91 Item 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 Pictures of site-Frontage 92 Item 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 Pictures of site-interior 93 Item 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 Pictures of site-interior 94 Item 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 demographics 95 Item 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 demographics 96 Item 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 demographics 97 Item 2. 32%R[5RVHYLOOH0LQQHVRWD3KRQH--H-PDLOFJRVHW#FRPFDVWQHW 0,11(627$5($/(67$7($335$,6$/6(59,&(6 demographics 98 Item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ualifications 99 Item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¶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¶V6FKRRORI%XVLQHVV +RQRUDEOHGLVFKDUJHIURP86$UP\ Qualifications 100 Item 2. SACA Meeting with City 6.7.21 Presented by Dave and Steve Campaign Launch December 2020 - 7 months into campaign out of a 36 month process Public Funding -Pending $1.5 M ($300K -$1.5M) from Legislature. As of Saturday, 6.5.21 our bill was in play with Chair Fou Lee of the MN House of Representatives. $1 M Congressional Request from either Sen. Klobuchar and Sen. Smith's office Total Public Funding Pending $2.5 million Public Funding -To be Submitted $300K LCA -TOD for eligible activities Up to $100K -CDBG $1M ARP -small city funding Total Public Funding to be Submitted $1.4M Additionally, Up to $3M TEBQ draw loan (interest only first year) if necessary Individual giving: $161,385 (for programs and building) Foundation Pending giving: $122,003 (for programs and building) ***Total Awarded to date: $283,388 ***Total Pending to date: $2,539,000 ***Total to be Submitted to date: $1,4 00,000 with additional bridge funding if necessary (TEBQ) MOU in place June Start talking about community engagement in July, 2021 Celebrate State funding if in place in July 2021 if awarded or later if special session extends into fall Architectural and Engineering work is underway, and to be wrapped up in August 2021 Design 75% in July Design 100% in early September Entitlement with Legislative or TEBQ funding in place in September 2021 Land Use Approvals September 2021 (pending outcomes of funding things to adjust up or back) Bids September-October Construction (weather depending) 4Q or lQ Distributed to City Council at 6/7/21 Work Session 101 Item 2. Support with Community Engagement with announcements of in-person and zoom convenings Continued support with LCA-TOD application -City will be the entity to submit this application. See below timeline LCA-TOD Project planning kick-off with team week of 6.7.21 with Bill/Owners Rep Agree upon eligible activities for the project week of 6.21.21 Budget drafting week of 7.5.21 Site rendering #1, week of 7.12.21 Site rendering #2 week of 7 .26.21 LCA TOD grant draft to Minerva Hark (CH) week of 8.9.21 Final grant draft to Minerva Hark (CH) week of 8.23.21 SACA would like to know if the City will furnish an appraisal of the new site? 102 Item 2. CITY COUNCIL WORK SESSION AGENDA SECTION WORK SESSION ITEMS MEETING DATE JUNE 7, 2021 ITEM: Report (Draft) for Sewer Modeling for Sanitary Sewer Collection District 1 DEPARTMENT: Public Works BY/DATE: Kevin Hansen 6/03/2021 CITY STRATEGY: (please indicate areas that apply by adding a bold “X” in front of the selected text below) _Safe Community _Diverse, Welcoming “Small-Town” Feel _Economic Strength _Excellent Housing/Neighborhoods _Equity and Affordability X_Strong Infrastructure/Public Services _Opportunities for Play and Learning _Engaged, Multi-Generational, Multi-Cultural Population BACKGROUND: The City of Columbia Heights approved a contract with the consulting firm of Bolton & Menk on April 26th to review sanitary sewer capacities in Sewer Collection District 1. The City has previously experienced flow capacity issues in the trunk sanitary sewer system in Collection District 1 . , Identified issues contributing to capacity restrictions include identifying issues such as size of pipepipe size, grades or slope of the pipe, Inflow and Infiltration (I-I), and event flows. exceeding the design capacity asThese identified issues are all potential factors reducing flow capacity. With these existing conditions and two proposed redevelopment sites in Collection District 1, a detailed evaluation of current pipe capacity, impact of the proposed developments, and recommendations to ensure sufficient future sewer capacity was conducted. Attached is the report (draft) from Bolton & Menk which includes:  A review of the existing sewer sheds  Creation of the sewer model using existing and planned land uses  Evaluation of dry weather flow and peak capacities  Model analysis of the collection district trunk line west of Central Avenue in: o Existing condition o With 62 unit development o With 550 unit development  Preliminary recommendations / options It should be noted that the work effort does include wet weather fl ow monitoring, but due to a lack of significant rainfall events, a peaking factor based on Metropolitan Council Environmental Services was used to estimate peak flow. Sanitary sewer monitoring is ongoing and the peaking factor will be updated if/when wet weather conditions are recorded. The following options/recommendations are included in the evaluation: 1. Remove the clear water entering the sewer system at the source (foundation drains) 2. Increase pipe sizes by replacement or pipe bursting 3. Re-route a portion of the existing flow, along with the new development into new mains 4. Installation of a storage chamber with sewer lift station to divert high flow events 103 Item 4. City of Columbia Heights - Council Letter Page 2 5. Combination of options 1-4 Figure(s) Summary: MODEL o Figure 1: Collection District 1 pipe segment being modeled o Figure 2: Modeled area of the City in Collection District 1 EXISTING CONDITIONS o Figure 3-1: Existing Condition - modeled peak capacity of trunk line as a percentage flowing full o Figure 3-2: Existing Condition – recommended pipe sizes of trunk line 62 UNIT REDEVELOPMENT o Figure 4-1: 62 Unit Redevelopment impact to existing trunk line as a percentage flowing full 550 UNIT REDEVELOPMENT o Figure 4-2: 550 Unit Redevelopment impact to existing trunk line as a percentage flowing full RECOMMENDATIONS o Figure 7: Recommended pipe sizes to remain in existing condition o Figure 8: Reroute option – reroute flow at 43rd and Jackson and the new development north to a new pipe on 44th Avenue continuing west to Washington; and upsize approximately 2,968 feet of existing pipe west of Washington. Staff will review the modeling data with existing conditions and potential impacts of development at the work session. ATTACHMENT(S): Draft Sanitary Sewer Assessment Report dated June 2, 2021. 104 Item 4. June 2, 2021 Kevin Hansen, PE Public Works Director/City Engineer 637 38th Avenue NE Columbia Heights, MN 55421 RE: Sanitary Sewer Assessment City of Columbia Heights Project No.: 0R1.124055 Mr. Hansen, The goal of the analysis was to investigate potential pipe capacity issues within the sanitary sewer system along Jackson Street NE, between 41st Avenue NE and 43rd Avenue NE, and to preliminarily identify potential issues in the downstream sanitary sewer main along 43rd Avenue NE, 44th Avenue NE, 45th Avenue NE, and Main Street NE. Redevelopment is planned within the area and the City of Columbia Heights wants to identify potential pipe capacity issues. Both existing and proposed site conditions were analyzed and a steady state, Autodesk Storm and Sanitary Analysis (SSA), hydraulic model was created for both scenarios. Figure 1 in Appendix A is a map showing the study extents. EXECUTIVE SUMMARY Based on our analysis, the sanitary sewer system is currently operating below its designed capacity along Jackson Street NE, 45th Avenue NE, and Main Street NE and operating above its designed capacity along 43rd and 44th Avenue NE. These conditions remain unchanged when considering the proposed developments located in southeast corner of the Jackson Street NE and 42nd Avenue NE intersection and north of the Jackson Street NE and 43rd Avenue NE intersection. The intersection of Jackson Street NE and 43rd Avenue NE is a regional low point. During larger rainfall events, water will start to pool within this low area. Given the pipe material is vitrified clay pipe (VCP), and the age of the existing sanitary sewer system, stormwater has a high potential to enter the system. The sanitary sewer main from Central Ave to the Met Council connection (end of the study area) was lined to address I/I concerns. However, the services and laterals remain clay and potentially subject to I/I impacts. Significant sanitary sewer back up events have historically been correlated to significant rainfall and may not be tied directly to base, or low, sanitary discharges. The subject rainfall events include both high intensity, short duration events as well as slower 24-hour events that produce several inches of rain. Furthermore, the groundwater has been subject to elevation fluctuations during rain events, which may lead to infiltration in areas with dated service connections and deteriorating pipe materials. It was noted during the field installation of the sanitary flow meters that some of the manhole structures and pipes contained a large amount of sediment. The City may benefit from televising the sanitary sewer mains to look for pipe and structure defects, potential I/I issues, and to determine the extent of the silt/sediment issues observed within the system. These areas could be cleaned out to increase the hydraulic capacity of the sanitary sewer system and reduce the potential for backups. Three alternative means of addressing the under capacity sanitary sewer mains were generally reviewed and include: 1. Mitigate I/I by removing foundation drain connections, 2. Increasing pipe sizes by 105 Item 4. 106 Item 4. 107 Item 4. 108 Item 4. 109 Item 4. 110 Item 4. 111 Item 4. 112 Item 4. 44TH AVE NE 6T H S T N E 5T H S T N E 7T H S T N E 4T H S T N E 2N D S T N E MA I N S T N E 3R D S T N E 45TH AVE NE 41ST AVE NE CE N T R A L A V E N E MO N R O E S T N E JE F F E R S O N S T N E MA D I S O N S T N E QU I N C Y S T N E UN I V E R S I T Y A V E N E WA S H I N G T O N S T N E C ST 46TH AVE NE A ST 2 1 / 2 S T N E 46 1/2 AVE NE D ST B ST TY L E R S T N E 43RD AVE NE 42ND AVE NE E ST MA U R E E N D R N E JA C K S O N S T N E VA N B U R E N S T N E TY L E R P L N E 40 1/2 AVE NE KAREN LN NE KATHY LN NE Q U I N C Y W A Y N E CA L I F O R N I A S T N E VA N B U R E N S T N E 3R D S T N E Q U I N C Y W A Y N E 43RD AVE NE JA C K S O N S T N E 42ND AVE NE 46TH AVE NE CE N T R A L A V E N E UN I V E R S I T Y A V E N E VA N B U R E N S T N E UN I V E R S I T Y A V E N E 41ST AVE NE JA C K S O N S T N E 46TH AVE NE D S T 45TH AVE NE JA C K S O N S T N E Ma p D o c u m e n t : H : \ C O L H T S \ 0 R 1 1 2 4 0 5 5 \ G I S \ E S R I \ M C E S 3 0 - i n c h A n a l y s i s \ F i g u r e s \ F i g u r e 1 - S t u d y E x t e n t s . m x d | D a t e S a v e d : 6 / 2 / 2 0 2 1 1 2 : 4 2 : 1 2 P M Sanitary Sewer Analysis City of Columbia Heights, MN Figure 1 - Study Extents June 2021 Legend !I Sanitary Manholes Study Area - Pipes Sanitary Pipes Parcels 0 600FeetSource: City of Columbia Heights, Anoka County 113 Item 4. 37TH 4T H 5T H 6T H 7T H 44TH 40TH MA I N 3R D 2N D 49TH 42ND 45TH 43RD 50TH 53RD EA S T R I V E R UN I V E R S I T Y TYLE R 41ST POL K JE F F E R S O N CE N T R A L 2 1 / 2 ST I N S O N RES E R V O I R QU I N C Y 39TH AR T H U R 46TH 47TH C MO N R O E A MA D I S O N HA Y E S 51ST 46 1/2 42 1/2 48TH 44 1/2 FAIRWAY 43 1/2 JA C K S O N D LINCOLNWA S H I N G T O N HUSET HE I G H T S FI L L M O R E INNS B R U C K MA R S H A L L VA N B U R E N MILL CH A T H A M B F JO H N S O N MC L E O D CL E V E L A N D 38TH GOULD 52ND H A R T MC K I N L E Y TA Y L O R HO R I Z O N GRA N D TRO L L H A G E N U P L A N D HI G H W A Y 6 5 49 1/2 50 1/2 ARGONNE RO Y C E HU G H E S BE N J A M I N IN D U S T R I A L SUMM I T 45 1/2 39 1/2 PE N N I N E PILOT 47 1/2 BERNE LOMIANKI RO M A N E D G E M O O R MA T T E R H O R N FOREST CIR C L E T E R R A C E PANORAMA LE A N D E R BU C H A N A N PI E R C E PARKVI E W GLACIER PE T E R S SA I N T I M I E R CHALET WIND E M E R E HIGHLAND NORTHERN STACKS WE S T U P L A N D CL E A R V I E W MU L C A R E AS H T O N EA S T U P L A N D R A I N I E R L O O K O U T SAI N T M O R I T Z MA U R E E N UL Y S S E S SU L L I V A N EA S T R I V E R R D S E R V I C E CAPITOL NORTH UPL A N D JOLLY MAIDEN BA K K E N GOLF 40 1/2 GIBRALTAR GR A N D V I E W MO L A N WE S T I N N S B R U C K PA R K S I D E GA U V I T T E MC K E N N A TO P P E R RA I N E R CA L I F O R N I A KAREN CHEERY KHYBER KATHY EAST BERNE BOREALIS QU I N C Y MA D I S O N BE N J A M I N 47TH 42ND 5T H E A S T R I V E R Q U I N C Y TY L E R 47TH 52ND 48TH JO H N S O N 39TH JA C K S O N FI L L M O R E CE N T R A L ST I N S O N PARKVIEW LI N C O L N 47TH 52ND 43RD PI E R C E 43RD L I N C O L N JA C K S O N D Q U I N C Y MA D I S O N TY L E R PI E R C E TY L E R JA C K S O N 41ST 51ST VA N B U R E N SULLIVAN PIERCE 38TH WA S H I N G T O N CA L I F O R N I A FI L L M O R E BU C H A N A N 41ST 2 1 / 2 JO H N S O N TA Y L O R 46TH PI E R C E 47 1/2 45TH BU C H A N A N 37TH 39TH 44TH 45TH POLK MO N R O E 43RD 5T H 3R D MO N R O E 52ND UN I V E R S I T Y UN I V E R S I T Y CE N T R A L 46TH 48TH MA D I S O N 38TH PO L K CE N T R A L JA C K S O N 47TH VA N B U R E N 53RD JO H N S O N BU C H A N A N Ma p D o c u m e n t : H : \ C O L H T S \ 0 R 1 1 2 4 0 5 5 \ G I S \ E S R I \ M C E S 3 0 - i n c h A n a l y s i s \ F i g u r e s \ F i g u r e 2 - S a n i t a r y S e w e r s h e d s . m x d | D a t e S a v e d : 6 / 1 / 2 0 2 1 3 : 3 1 : 0 2 P M Sanitary Sewer Analysis City of Columbia Heights, MN Figure 2 - Sanitary Sewersheds June 2021 Legend !I Sanitary Manholes Study Area - Pipes Sanitary Pipes City of Columbia Heights MCES Road_Centerlines Sewersheds 35B01 35B03 35B07 35B08 - COLHTS 35B08 - MCES 35B09 35B10 35B11 35B12 35B19 35A01 35A02 35A03 35A04 35A13 35A14 35B13 35A10 35A11 35A12 35A37 35A38 35A39 36B01 Parcels 0 1,500FeetSource: City of Columbia Heights, Anoka County 114 Item 4. 36B01 ID 1 5 12 ' ' ID 915''ID 715''ID 524''ID 615''ID 815''ID 430'' ID 2 30 ' ' ID 3 30 ' ' ID 2 9 8' ' ID 1 1 15 ' 'ID 1315'' ID 1812'' ID 2012'' ID 1612''ID 1712'' ID 1215'' ID 2 7 8' ' ID 2 8 8' ' ID 1412'' ID 2610'' ID 1 0 15 ' ' ID 2110''ID 1 9 12 ' ' ID 2510'' ID 2210'' ID 130'' ID 2410''ID 2310'' 44TH AVE NE 6T H S T N E 5T H S T N E 7T H S T N E 4T H S T N E 2N D S T N E MA I N S T N E 3R D S T N E 45TH AVE NE 41ST AVE NE CE N T R A L A V E N E MO N R O E S T N E JE F F E R S O N S T N E MA D I S O N S T N E QU I N C Y S T N E UN I V E R S I T Y A V E N E WA S H I N G T O N S T N E C ST 46TH AVE NE A ST 2 1 / 2 S T N E 46 1/2 AVE NE D ST B ST TY L E R S T N E 43RD AVE NE 42ND AVE NE E ST MA U R E E N D R N E JA C K S O N S T N E VA N B U R E N S T N E TY L E R P L N E 40 1/2 AVE NE KAREN LN NE KATHY LN NE Q U I N C Y W A Y N E CA L I F O R N I A S T N E VA N B U R E N S T N E 3R D S T N E Q U I N C Y W A Y N E 43RD AVE NE JA C K S O N S T N E 42ND AVE NE 46TH AVE NE CE N T R A L A V E N E UN I V E R S I T Y A V E N E VA N B U R E N S T N E UN I V E R S I T Y A V E N E 41ST AVE NE JA C K S O N S T N E 46TH AVE NE D S T JA C K S O N S T N E Map D o c u m e n t : H : \ C O L H T S \ 0 R 1 1 2 4 0 5 5 \ G I S \ E S R I \ M C E S 3 0 - i n c h A n a l y s i s \ F i g u r e s \ F i g u r e 3 - 1 - E x i s t i n g C o n d i t i o n s P i p e C a p a c i t y . m x d | D a t e S a v e d : 6 / 2 / 2 0 2 1 8 : 1 4 : 0 3 A M Sanitary Sewer Analysis City of Columbia Heights, MN Figure 3-1 - Existing Conditions Pipe Capacity June 2021 Legend Mo deled San itary Man ho le Un m o deled San itary Man ho le Un m o deled San itary Pipe Modeled Sanitary Sewer % Full < 50% 50-79% 80-99% ≥ 100% Parcels 0 600 FeetSource: City of Columbia Heights, Anoka County 115 Item 4. 36B01 ID 1 5 Ex 1 2 ' ' / P r 1 5 " ID 9Ex 15''/Pr 18"ID 7Ex 15''/Pr 18"ID 5Ex 24''ID 6Ex 15''/Pr 18"ID 8Ex 15''/Pr 18"ID 4Ex 30'' ID 2 Ex 3 0 ' ' ID 3 Ex 3 0 ' ' ID 2 9 Ex 8 ' ' ID 1 1 Ex 1 5 ' ' / P r 1 8 " ID 13Ex 15'' ID 18Ex 12''/Pr 15" ID 20Ex 12''/Pr 15" ID 16Ex 12''/Pr 15"ID 17Ex 12''/Pr 15" ID 12Ex 15''/Pr 18" ID 2 7 Ex 8 ' ' ID 2 8 Ex 8 ' ' ID 14Ex 12''/Pr 15" ID 26Ex 10'' ID 1 0 Ex 1 5 ' ' / P r 1 8 " ID 21Ex 10''/Pr 12" ID 1 9 Ex 1 2 ' ' / P r 1 5 " ID 25Ex 10''/Pr 12" ID 22Ex 10''/Pr 12" ID 1Ex 30'' ID 24Ex 10''/Pr 12"ID 23Ex 10''/Pr 12" 44TH AVE NE 6T H S T N E 5T H S T N E 7T H S T N E 4T H S T N E 2N D S T N E MA I N S T N E 3R D S T N E 45TH AVE NE 41ST AVE NE CE N T R A L A V E N E MO N R O E S T N E JE F F E R S O N S T N E MA D I S O N S T N E QU I N C Y S T N E UN I V E R S I T Y A V E N E WA S H I N G T O N S T N E C ST 46TH AVE NE A ST 2 1 / 2 S T N E 46 1/2 AVE NE D ST B ST TY L E R S T N E 43RD AVE NE 42ND AVE NE E ST MA U R E E N D R N E JA C K S O N S T N E VA N B U R E N S T N E TY L E R P L N E 40 1/2 AVE NE KAREN LN NE KATHY LN NE Q U I N C Y W A Y N E CA L I F O R N I A S T N E VA N B U R E N S T N E 3R D S T N E Q U I N C Y W A Y N E 43RD AVE NE JA C K S O N S T N E 42ND AVE NE 46TH AVE NE CE N T R A L A V E N E UN I V E R S I T Y A V E N E VA N B U R E N S T N E UN I V E R S I T Y A V E N E 41ST AVE NE JA C K S O N S T N E 46TH AVE NE D S T JA C K S O N S T N E Map D o c u m e n t : H : \ C O L H T S \ 0 R 1 1 2 4 0 5 5 \ G I S \ E S R I \ M C E S 3 0 - i n c h A n a l y s i s \ F i g u r e s \ F i g u r e 3 - 2 - E x i s t i n g C o n d i t i o n s P i p e C a p a c i t y _ P e a k U p s i z e . m x d | D a t e S a v e d : 6 / 2 / 2 0 2 1 8 : 5 3 : 0 2 A M Sanitary Sewer Analysis City of Columbia Heights, MN Figure 3-2 - Existing Conditions - Peak Flow Upsize June 2021 Legend Modeled S an itary Man hole Un m odeled S an itary Man hole Un m odeled S an itary Pipe Modeled Sanitary Sewer % Full < 50% 50-79% 80-99% ≥100% Parcels 0 600 FeetSource: City of Columbia Heights, Anoka County 116 Item 4. ID 2310'' ID 2410'' ID 130'' ID 2210'' ID 2510'' ID 1 9 12 ' ' ID 2110'' ID 1 0 15 ' ' ID 2610'' ID 1412'' ID 2 8 8' ' ID 2 7 8' ' ID 1215'' ID 1712''ID 1612'' ID 2012'' ID 1812'' ID 1315''ID 1 1 15 ' ' ID 2 9 8' ' ID 3 30 ' ' ID 2 30 ' ' ID 430''ID 815''ID 615''ID 524''ID 715''ID 915'' ID 1 5 12 ' ' ID 2 9 8' ' 36B01 44TH AVE NE 6T H S T N E 5T H S T N E 7T H S T N E 4T H S T N E 2N D S T N E MA I N S T N E 3R D S T N E 45TH AVE NE 41ST AVE NE CE N T R A L A V E N E MO N R O E S T N E JE F F E R S O N S T N E MA D I S O N S T N E QU I N C Y S T N E UN I V E R S I T Y A V E N E WA S H I N G T O N S T N E C ST 46TH AVE NE A ST 2 1 / 2 S T N E 46 1/2 AVE NE D ST B ST TY L E R S T N E 43RD AVE NE 42ND AVE NE E ST MA U R E E N D R N E JA C K S O N S T N E VA N B U R E N S T N E TY L E R P L N E 40 1/2 AVE NE KAREN LN NE KATHY LN NE Q U I N C Y W A Y N E CA L I F O R N I A S T N E VA N B U R E N S T N E 3R D S T N E Q U I N C Y W A Y N E 43RD AVE NE JA C K S O N S T N E 42ND AVE NE 46TH AVE NE CE N T R A L A V E N E UN I V E R S I T Y A V E N E VA N B U R E N S T N E UN I V E R S I T Y A V E N E 41ST AVE NE JA C K S O N S T N E 46TH AVE NE D S T JA C K S O N S T N E Map D o c u m e n t : H : \ C O L H T S \ 0 R 1 1 2 4 0 5 5 \ G I S \ E S R I \ M C E S 3 0 - i n c h A n a l y s i s \ F i g u r e s \ F i g u r e 4 - 1 - P r o p o s e d C o n d i t i o n s P i p e C a p a c i t y _ 6 6 O n l y . m x d | D a t e S a v e d : 6 / 1 / 2 0 2 1 5 : 3 0 : 0 2 P M Sanitary Sewer Analysis City of Columbia Heights, MN Figure 4-1 - Proposed 62 Unit Development Pipe Capacity June 2021 Legend !I Modeled San itary Man hole Un m odeled San itary Man hole Un m odeled San itary Pipe Modeled Sanitary Sewer % Full < 50% 50-79% 80-99% ≥ 100% R edevelopm en t Areas Parcels 0 600 FeetSource: City of Columbia Heights, Anoka County 62 Un its 117 Item 4. ID 2310'' ID 2410'' ID 130'' ID 2210'' ID 2510'' ID 1 9 12 ' ' ID 2110'' ID 1 0 15 ' ' ID 2610'' ID 1412'' ID 2 8 8' ' ID 2 7 8' ' ID 1215'' ID 1712''ID 1612'' ID 2012'' ID 1812'' ID 1315''ID 1 1 15 ' ' ID 2 9 8' ' ID 3 30 ' ' ID 2 30 ' ' ID 430''ID 815''ID 615''ID 524''ID 715''ID 915'' ID 1 5 12 ' ' 36B01 44TH AVE NE 6T H S T N E 5T H S T N E 7T H S T N E 4T H S T N E 2N D S T N E MA I N S T N E 3R D S T N E 45TH AVE NE 41ST AVE NE CE N T R A L A V E N E MO N R O E S T N E JE F F E R S O N S T N E MA D I S O N S T N E QU I N C Y S T N E UN I V E R S I T Y A V E N E WA S H I N G T O N S T N E C ST 46TH AVE NE A ST 2 1 / 2 S T N E 46 1/2 AVE NE D ST B ST TY L E R S T N E 43RD AVE NE 42ND AVE NE E ST MA U R E E N D R N E JA C K S O N S T N E VA N B U R E N S T N E TY L E R P L N E 40 1/2 AVE NE KAREN LN NE KATHY LN NE Q U I N C Y W A Y N E CA L I F O R N I A S T N E VA N B U R E N S T N E 3R D S T N E Q U I N C Y W A Y N E 43RD AVE NE JA C K S O N S T N E 42ND AVE NE 46TH AVE NE CE N T R A L A V E N E UN I V E R S I T Y A V E N E VA N B U R E N S T N E UN I V E R S I T Y A V E N E 41ST AVE NE JA C K S O N S T N E 46TH AVE NE D S T JA C K S O N S T N E Ma p D o c u m e n t : H : \ C O L H T S \ 0 R 1 1 2 4 0 5 5 \ G I S \ E S R I \ M C E S 3 0 - i n c h A n a l y s i s \ F i g u r e s \ F i g u r e 4 - 2 - P r o p o s e d C o n d i t i o n s P i p e C a p a c i t y _ 5 5 0 O n l y . m x d | D a t e S a v e d : 6 / 1 / 2 0 2 1 5 : 1 6 : 5 2 P M Sanitary Sewer Analysis City of Columbia Heights, MN Figure 4-2 - Proposed 550 Unit Development Pipe Capacity June 2021 Legend !I Modeled Sanitary Manhole Unmodeled Sanitary Manhole Unmodeled Sanitary Pipe Modeled Sanitary Sewer % Full < 50% 50-79% 80-99% >100% 73506 Parcels 0 600FeetSource: City of Columbia Heights, Anoka County 550 Units 118 Item 4. ID 2310'' ID 2410'' ID 130'' ID 2210'' ID 2510'' ID 1 9 12 ' ' ID 2110'' ID 1 0 15 ' ' ID 2610'' ID 1412'' ID 2 8 8' ' ID 2 7 8' ' ID 1215'' ID 1712''ID 1612'' ID 2012'' ID 1812'' ID 1315''ID 1 1 15 ' ' ID 3 30 ' ' ID 2 30 ' ' ID 430''ID 815''ID 615''ID 524''ID 715''ID 915'' ID 1 5 12 ' ' ID 2 9 8' ' 44TH AVE NE 6T H S T N E 5T H S T N E 7T H S T N E 4T H S T N E 2N D S T N E MA I N S T N E 3R D S T N E 45TH AVE NE 41ST AVE NE CE N T R A L A V E N E MO N R O E S T N E JE F F E R S O N S T N E MA D I S O N S T N E QU I N C Y S T N E UN I V E R S I T Y A V E N E WA S H I N G T O N S T N E C ST 46TH AVE NE A ST 2 1 / 2 S T N E 46 1/2 AVE NE D ST B ST TY L E R S T N E 43RD AVE NE 42ND AVE NE E ST MA U R E E N D R N E JA C K S O N S T N E VA N B U R E N S T N E TY L E R P L N E 40 1/2 AVE NE KAREN LN NE KATHY LN NE Q U I N C Y W A Y N E CA L I F O R N I A S T N E VA N B U R E N S T N E 3R D S T N E Q U I N C Y W A Y N E 43RD AVE NE JA C K S O N S T N E 42ND AVE NE 46TH AVE NE CE N T R A L A V E N E UN I V E R S I T Y A V E N E VA N B U R E N S T N E UN I V E R S I T Y A V E N E 41ST AVE NE JA C K S O N S T N E 46TH AVE NE D S T JA C K S O N S T N E Map D o c u m e n t : H : \ C O L H T S \ 0 R 1 1 2 4 0 5 5 \ G I S \ E S R I \ M C E S 3 0 - i n c h A n a l y s i s \ F i g u r e s \ F i g u r e 4 - 3 - P r o p o s e d C o n d i t i o n s P i p e C a p a c i t y B O T H . m x d | D a t e S a v e d : 6 / 1 / 2 0 2 1 5 : 3 0 : 1 1 P M Sanitary Sewer Analysis City of Columbia Heights, MN Figure 4-3 - Proposed Full Build Pipe Capacity June 2021 Legend !I Mo deled San itary Man ho le Un m o deled San itary Man ho le Un m o deled San itary Pipe Modeled Sanitary Sewer % Full < 50% 50-79% 80-99% ≥ 100% R edevelo pm en t Areas Parcels 0 600 FeetSource: City of Columbia Heights, Anoka County 62 Un its 550 Un its 119 Item 4. ! ! ! ! ! ! !! ! ! ! ! !! ! ! ! ! ! ! ! ! ! ! ! ! !!!!! !!!!!! !!! !!! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !! !! ! ! ! !! ! !! ! ! !! ! ! ! !! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !!!! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !!! ! !! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !!! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !! ! ! ! ! !! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !! ! ! ! ! ! !! ! ! ! ! ! ! ! ! ! ! ! !! ! ! ! ! ! ! ! ! !! ! ! ! ! ! !!! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !! ! ! ! ! ! ! ! !! !! ! ![![ GF 10" Gage to Remain GF On 12" GF On 15" GF On 24" GF On City 15" 8" Gage Removed 44TH AVE NE 6T H S T N E 5T H S T N E 7T H S T N E 4T H S T N E 2N D S T N E MA I N S T N E 3R D S T N E 45TH AVE NE 41ST AVE NE CE N T R A L A V E N E MO N R O E S T N E JE F F E R S O N S T N E MA D I S O N S T N E QU I N C Y S T N E UN I V E R S I T Y A V E N E WA S H I N G T O N S T N E C ST 46TH AVE NE A ST 2 1 / 2 S T N E 46 1/2 AVE NE D ST B ST TY L E R S T N E 42ND AVE NE 43RD AVE NE E ST MA U R E E N D R N E TY L E R P L N E JA C K S O N S T N E VA N B U R E N S T N E 40 1/2 AVE NE KAREN LN NE KATHY LN NECA L I F O R N I A S T N E Q U I N C Y W A Y N E 3R D S T N E Q U I N C Y W A Y N E 42ND AVE NE JA C K S O N S T N E 43RD AVE NE 46TH AVE NE CE N T R A L A V E N E UN I V E R S I T Y A V E N E VA N B U R E N S T N E UN I V E R S I T Y A V E N E 41ST AVE NE JA C K S O N S T N E 46TH AVE NE D S T 45TH AVE NE JA C K S O N S T N E Ma p D o c u m e n t : H : \ C O L H T S \ 0 R 1 1 2 4 0 5 5 \ G I S \ E S R I \ M C E S 3 0 - i n c h A n a l y s i s \ F i g u r e s \ F i g u r e 5 - S a n i t a r y G a g e L o c a t i o n M a p . m x d | D a t e S a v e d : 5 / 1 9 / 2 0 2 1 1 : 1 0 : 3 3 P M Regional Sanitary Sewer Capacity Assessment Columbia Heights, MN Figure 5 - Sanitary Gage Locations June 2021 Legend !I City Limits !Sanitary MH ![MCES Meter MCES Interceptor Sanitary Pipes Sanitary Main Assessment 0 1,250FeetSource: 120 Item 4. !!!! ! !! ! ! ! !! 90 4 90 6 9 0 8 902 90 0 898 91 0 89 6 9 1 2 9 1 4 894 9 1 6 91 8 92 0 892 9 0 4 9 0 8 916 91 0 892 9 1 0 89 4 91 4 900 9 0 6 908 91 8 898 9 0 2 894 896 91 2 91 6 908 916 42ND 43RD QU I N C Y JA C K S O N VA N B U R E N Ma p D o c u m e n t : H : \ C O L H T S \ 0 R 1 1 2 4 0 5 5 \ G I S \ E S R I \ M C E S 3 0 - i n c h A n a l y s i s \ F i g u r e s \ F i g u r e 6 - L I D A R _ H E A T M A P . m x d | D a t e S a v e d : 5 / 2 8 / 2 0 2 1 1 0 : 0 2 : 4 4 A M Sanitary Sewer Analysis City of Columbia Heights, MN Figure 6 - Topography Map June 2021 Legend !I 0 100FeetSource: Contours Index Intermediate !Sanitary Manhole Sanitary Pipe 121 Item 4. ID 27Ex. 8"L = 330' ID 26Ex. 10"L = 318' ID 25Ex. 10" / Prop. 12"L = 151' ID 24Ex. 10" / Prop. 12"L = 93' ID 23Ex. 10" / Prop. 12"L = 88' ID 22Ex. 10" / Prop. 15"L = 95'ID 21Ex. 10" / Prop. 15"L = 237' ID 20Ex. 12" / Prop. 18"L = 332' ID 19Ex. 12" / Prop. 18"L = 217' ID 18Ex. 12" / Prop. 18"L = 332' ID 17Ex. 12" / Prop. 18"L = 332' ID 16Ex. 12" / Prop. 18"L = 332' ID 15Ex. 12" / Prop. 18"L = 443' ID 14Ex. 12" / Prop. 18"L = 332' ID 13Ex. 15" / Prop. 18"L = 333' ID 12Ex. 15" / Prop. 18"L = 331' ID 11Ex. 15" / Prop. 18"L = 331' ID 10Ex. 15" / Prop. 18"L = 309' ID 9Ex. 15" / Prop. 18"L = 335' ID 8Ex. 15" / Prop. 18"L = 331' ID 7Ex. 15" / Prop. 18"L = 333' ID 6Ex. 15" / Prop. 18"L = 333' ID 5Ex. 24"L = 333' ID 4Ex. 30"L = 329' ID 3Ex. 30"L = 305' ID 2Ex. 30"L = 306' ID 1Ex. 30"L = 400' . . . . . . . . . . . . .. . . . . . . . . . . . . ID 29Ex. 8"L = 370' ID 28Ex. 8"L = 330' 44TH AVE NE 6T H S T N E 5T H S T N E 7T H S T N E 4T H S T N E 2N D S T N E MA I N S T N E 3R D S T N E 45TH AVE NE 41ST AVE NE CE N T R A L A V E N E MO N R O E S T N E JE F F E R S O N S T N E MA D I S O N S T N E QU I N C Y S T N E UN I V E R S I T Y A V E N E WA S H I N G T O N S T N E C ST 46TH AVE NE A ST 2 1 / 2 S T N E 46 1/2 AVE NE D ST B ST TY L E R S T N E 43RD AVE NE 42ND AVE NE E ST MA U R E E N D R N E JA C K S O N S T N E VA N B U R E N S T N E TY L E R P L N E 40 1/2 AVE NE KAREN LN NE KATHY LN NE Q U I N C Y W A Y N E CA L I F O R N I A S T N E VA N B U R E N S T N E 3R D S T N E Q U I N C Y W A Y N E 43RD AVE NE 42ND AVE NE 46TH AVE NE CE N T R A L A V E N E UN I V E R S I T Y A V E N E VA N B U R E N S T N E UN I V E R S I T Y A V E N E 41ST AVE NE JA C K S O N S T N E 46TH AVE NE D S T 45TH AVE NE JA C K S O N S T N E Map D o c u m e n t : H : \ C O L H T S \ 0 R 1 1 2 4 0 5 5 \ G I S \ E S R I \ M C E S 3 0 - i n c h A n a l y s i s \ F i g u r e s \ F i g u r e 7 - 1 - S a n i t a r y S e w e r U p s i z e . m x d | D a t e S a v e d : 6 / 1 / 2 0 2 1 5 : 3 3 : 4 7 P M Sanitary Sewer Analysis City of Columbia Heights, MN Figure 7 - Recommended Future Pipe Size June 2021 Legend !I Mo deled S an itary Man ho le Un mo deled S an itary Man ho le Un mo deled S an itary Pip e Future Sanitary Sewer % Full < 50% 50-79% 80-99% ≥ 100% Redevelo p men t Areas Parcels 0 600 FeetSource: City of Columbia Heights, Anoka County 62 Un its 550 Un its 122 Item 4. !(!(!(!(!(!(EEEE REROUTE PIPE = 15" BASED ON PIPE SLOPE AND MINIMUM GRADE REQUIREMENTS. ID 13Ex. 15" / Prop. 18"L = 333' ID 12Ex. 15" / Prop. 18"L = 331' ID 11Ex. 15" / Prop. 18"L = 331' ID 10Ex. 15" / Prop. 18"L = 309' ID 9Ex. 15" / Prop. 18"L = 335' ID 8Ex. 15" / Prop. 18"L = 331' ID 7Ex. 15" / Prop. 18"L = 333' ID 6Ex. 15" / Prop. 18"L = 333' ID 5Ex. 24"L = 333' ID 4Ex. 30"L = 329' ID 3Ex. 30"L = 305' ID 2Ex. 30"L = 306' ID 1Ex. 30"L = 400'.. . . . . . . . . . . . . ID 14Ex. 12" / Prop. 18"L = 332' L = 6 5 9 ' L = 338'L = 332'L = 234'L = 332'L = 332'44TH AVE NE 6T H S T N E 5T H S T N E 7T H S T N E 4T H S T N E 2N D S T N E MA I N S T N E 3R D S T N E 45TH AVE NE 41ST AVE NE CE N T R A L A V E N E MO N R O E S T N E JE F F E R S O N S T N E MA D I S O N S T N E QU I N C Y S T N E UN I V E R S I T Y A V E N E WA S H I N G T O N S T N E C ST 46TH AVE NE A ST 2 1 / 2 S T N E 46 1/2 AVE NE D ST B ST TY L E R S T N E 43RD AVE NE 42ND AVE NE E ST MA U R E E N D R N E JA C K S O N S T N E VA N B U R E N S T N E TY L E R P L N E 40 1/2 AVE NE KAREN LN NE KATHY LN NE Q U I N C Y W A Y N E CA L I F O R N I A S T N E VA N B U R E N S T N E 3R D S T N E Q U I N C Y W A Y N E 43RD AVE NE JA C K S O N S T N E 42ND AVE NE 46TH AVE NE CE N T R A L A V E N E UN I V E R S I T Y A V E N E VA N B U R E N S T N E UN I V E R S I T Y A V E N E 41ST AVE NE JA C K S O N S T N E 46TH AVE NE D S T 45TH AVE NE JA C K S O N S T N E 8' ' 12 ' ' 10'' 12'' 10'' 8' ' 10'' 12'' 10''10''12'' 12'' 8' ' 12 ' ' 10'' Ma p D o c u m e n t : H : \ C O L H T S \ 0 R 1 1 2 4 0 5 5 \ G I S \ E S R I \ M C E S 3 0 - i n c h A n a l y s i s \ F i g u r e s \ F i g u r e 8 - 1 - S a n i t a r y S e w e r R e r o u t e . m x d | D a t e S a v e d : 6 / 2 / 2 0 2 1 1 0 : 0 1 : 5 7 A M Sanitary Sewer Analysis City of Columbia Heights, MN Figure 8 - Proposed Conditions Pipe Re-Route Option June 2021 Legend !I Current Pipe Remains Pipe Upsized E Proposed Plug !(Proposed Reroute MH Modeled Sanitary Manhole Unmodeled Sanitary Manhole Proposed Reroute Option Unmodeled Sanitary Pipe Redevelopment Areas Parcels 0 600FeetSource: City of Columbia Heights, Anoka County 62 Units 550 Units 123 Item 4. 124 Item 4. Size Length US Invert DS Invert Slope Sanitary Sewer % Full From To (gpm) (MGD)(gpm) (MGD) (in) (ft) (ft) (ft) (%) (gpm) (MGD)(%) 1 35B19 35B84 782.85 1.13 3.2 2505.12 3.61 30 400 111.44 111.13 0.08 4441.72 6.40 56% 2 35B18 35B19 687.25 0.99 3.2 2199.20 3.17 30 306 111.69 111.44 0.08 4560.47 6.57 48% 3 35B06 35B18 687.25 0.99 3.2 2199.20 3.17 30 305 111.93 111.69 0.08 4475.65 6.44 49% 4 35B07 35B06 687.25 0.99 3.2 2199.20 3.17 30 329 112.19 111.93 0.08 4485.27 6.46 49% 5 35B08 35B07 685.20 0.99 3.2 2192.64 3.16 24 333 113.19 112.19 0.30 4820.82 6.94 45% 6 35B09 35B08 285.63 0.41 3.5 999.71 1.44 15 333 142.35 131.02 3.40 4633.57 6.67 22% 7 35B10 35B09 282.76 0.41 3.5 989.66 1.43 15 333 158.28 142.35 4.78 5494.26 7.91 18% 8 35B11 35B10 276.96 0.40 3.5 969.36 1.40 15 331 159.01 158.28 0.22 1180.23 1.70 82% 9 35B03 35B11 268.77 0.39 3.5 940.70 1.35 15 335 165.01 159.01 1.79 3361.84 4.84 28% 10 35B02 35B03 263.71 0.38 3.5 922.99 1.33 15 309 165.50 165.01 0.16 1000.63 1.44 92% 11 35B01 35B02 263.71 0.38 3.5 922.99 1.33 15 331 166.03 165.50 0.16 1006.25 1.45 92% 12 35B12 35B01 257.96 0.37 3.6 928.66 1.34 15 331 166.56 166.03 0.16 1005.19 1.45 92% 13 35B13 35B12 249.07 0.36 3.6 896.65 1.29 15 333 167.09 166.56 0.16 1002.16 1.44 89% 14 35A01 35B13 238.30 0.34 3.6 857.88 1.24 12 332 167.87 167.17 0.21 636.08 0.92 135% 15 35A02 35A01 232.81 0.34 3.6 838.12 1.21 12 443 168.76 167.87 0.20 620.97 0.89 135% 16 35A03 35A02 229.66 0.33 3.6 826.78 1.19 12 332 169.42 168.76 0.20 617.64 0.89 134% 17 35A04 35A03 220.77 0.32 3.6 794.77 1.14 12 332 170.08 169.42 0.20 617.64 0.89 129% 18 35A14 35A04 209.25 0.30 3.6 753.30 1.08 12 332 170.74 170.08 0.20 617.64 0.89 122% 19 35A13 35A14 198.02 0.29 3.7 732.67 1.06 12 217 171.17 170.74 0.20 617.35 0.89 119% 20 35A12 35A13 194.41 0.28 3.7 719.32 1.04 12 332 171.83 171.17 0.20 617.64 0.89 116% 21 35A72 35A12 158.24 0.23 3.8 601.31 0.87 10 237 172.56 172.02 0.23 406.55 0.59 148% 22 35A11 35A72 158.24 0.23 3.8 601.31 0.87 10 95 172.78 172.56 0.23 410.13 0.59 147% 23 35A65 35A11 151.29 0.22 3.8 574.90 0.83 10 88 173.30 172.78 0.59 655.14 0.94 88% 24 35A66 35A65 151.29 0.22 3.8 574.90 0.83 10 93 173.70 173.30 0.43 558.94 0.80 103% 25 35A10 35A66 151.29 0.22 3.8 574.90 0.83 10 151 174.50 173.80 0.46 579.70 0.83 99% 26 36B01 35A10 136.18 0.20 3.8 517.48 0.75 10 318 184.49 174.50 3.14 1509.88 2.17 34% 27 35A37 35A11 5.31 0.01 4.0 21.24 0.03 8 330 179.72 172.86 2.08 677.73 0.98 3% 28 35A38 35A37 4.08 0.01 4.0 16.32 0.02 8 330 186.58 179.72 2.08 677.73 0.98 2% 29 35A39 35A38 3.40 0.00 4.0 13.60 0.02 8 370 189.50 186.58 0.79 417.58 0.60 3% Table 1: Existing Pipe Capacity Pipe ID Node ID #Base Flow Peaking Factor Peak Flow Capacity 125 Item 4. Size Length US Invert DS Invert Slope Sanitary Sewer % Full From To (gpm) (MGD)(gpm) (MGD) (in) (ft) (ft) (ft) (%) (gpm) (MGD)(%) 1 35B19 35B84 791.87 1.14 3.1 2454.80 3.53 30 400 111.44 111.13 0.08 4441.72 6.40 55% 2 35B18 35B19 696.27 1.00 3.1 2158.44 3.11 30 306 111.69 111.44 0.08 4560.47 6.57 47% 3 35B06 35B18 696.27 1.00 3.1 2158.44 3.11 30 305 111.93 111.69 0.08 4475.65 6.44 48% 4 35B07 35B06 696.27 1.00 3.1 2158.44 3.11 30 329 112.19 111.93 0.08 4485.27 6.46 48% 5 35B08 35B07 694.22 1.00 3.1 2152.08 3.10 24 333 113.19 112.19 0.30 4820.82 6.94 45% 6 35B09 35B08 294.65 0.42 3.5 1031.28 1.49 15 333 142.35 131.02 3.40 4633.57 6.67 22% 7 35B10 35B09 291.78 0.42 3.5 1021.23 1.47 15 333 158.28 142.35 4.78 5494.26 7.91 19% 8 35B11 35B10 285.98 0.41 3.5 1000.93 1.44 15 331 159.01 158.28 0.22 1180.23 1.70 85% 9 35B03 35B11 277.79 0.40 3.5 972.27 1.40 15 335 165.01 159.01 1.79 3361.84 4.84 29% 10 35B02 35B03 272.73 0.39 3.6 981.83 1.41 15 309 165.50 165.01 0.16 1000.63 1.44 98% 11 35B01 35B02 272.73 0.39 3.6 981.83 1.41 15 331 166.03 165.50 0.16 1006.25 1.45 98% 12 35B12 35B01 266.98 0.38 3.6 961.13 1.38 15 331 166.56 166.03 0.16 1005.19 1.45 96% 13 35B13 35B12 258.09 0.37 3.6 929.12 1.34 15 333 167.09 166.56 0.16 1002.16 1.44 93% 14 35A01 35B13 247.32 0.36 3.6 890.35 1.28 12 332 167.87 167.17 0.21 636.08 0.92 140% 15 35A02 35A01 241.83 0.35 3.6 870.59 1.25 12 443 168.76 167.87 0.20 620.97 0.89 140% 16 35A03 35A02 238.68 0.34 3.3 787.64 1.13 12 332 169.42 168.76 0.20 617.64 0.89 128% 17 35A04 35A03 229.79 0.33 3.6 827.24 1.19 12 332 170.08 169.42 0.20 617.64 0.89 134% 18 35A14 35A04 218.27 0.31 3.6 785.77 1.13 12 332 170.74 170.08 0.20 617.64 0.89 127% 19 35A13 35A14 207.04 0.30 3.6 745.34 1.07 12 217 171.17 170.74 0.20 617.35 0.89 121% 20 35A12 35A13 203.43 0.29 3.7 752.69 1.08 12 332 171.83 171.17 0.20 617.64 0.89 122% 21 35A72 35A12 167.26 0.24 3.7 618.86 0.89 10 237 172.56 172.02 0.23 406.55 0.59 152% 22 35A11 35A72 167.26 0.24 3.7 618.86 0.89 10 95 172.78 172.56 0.23 410.13 0.59 151% 23 35A65 35A11 151.29 0.22 3.8 574.90 0.83 10 88 173.30 172.78 0.59 655.14 0.94 88% 24 35A66 35A65 151.29 0.22 3.8 574.90 0.83 10 93 173.70 173.30 0.43 558.94 0.80 103% 25 35A10 35A66 151.29 0.22 3.8 574.90 0.83 10 151 174.50 173.80 0.46 579.70 0.83 99% 26 36B01 35A10 136.18 0.20 3.8 517.48 0.75 10 318 184.49 174.50 3.14 1509.88 2.17 34% 27 35A37 35A11 14.33 0.02 4.0 57.32 0.08 8 330 179.72 172.86 2.08 677.73 0.98 8% 28 35A38 35A37 13.10 0.02 4.0 52.40 0.08 8 330 186.58 179.72 2.08 677.73 0.98 8% 29 35A39 35A38 3.40 0.00 4.0 13.60 0.02 8 370 189.50 186.58 0.79 417.58 0.60 3% Table 2-1: Proposed Pipe Capacity - 66 Unit Development Only Pipe ID Node ID #Base Flow Peaking Factor Peak Flow Capacity 126 Item 4. Size Length US Invert DS Invert Slope Sanitary Sewer % Full From To (gpm) (MGD)(gpm) (MGD) (in) (ft) (ft) (ft) (%) (gpm) (MGD)(%) 1 35B19 35B84 858.01 1.24 3.0 2574.03 3.71 30 400 111.44 111.13 0.08 4441.72 6.40 58% 2 35B18 35B19 762.41 1.10 3.1 2363.47 3.40 30 306 111.69 111.44 0.08 4560.47 6.57 52% 3 35B06 35B18 762.41 1.10 3.1 2363.47 3.40 30 305 111.93 111.69 0.08 4475.65 6.44 53% 4 35B07 35B06 762.41 1.10 3.1 2363.47 3.40 30 329 112.19 111.93 0.08 4485.27 6.46 53% 5 35B08 35B07 760.36 1.09 3.1 2357.12 3.39 24 333 113.19 112.19 0.30 4820.82 6.94 49% 6 35B09 35B08 360.79 0.52 3.4 1226.69 1.77 15 333 142.35 131.02 3.40 4633.57 6.67 26% 7 35B10 35B09 357.92 0.52 3.4 1216.93 1.75 15 333 158.28 142.35 4.78 5494.26 7.91 22% 8 35B11 35B10 352.12 0.51 3.4 1197.21 1.72 15 331 159.01 158.28 0.22 1180.23 1.70 101% 9 35B03 35B11 343.93 0.50 3.4 1169.36 1.68 15 335 165.01 159.01 1.79 3361.84 4.84 35% 10 35B02 35B03 338.87 0.49 3.5 1186.05 1.71 15 309 165.50 165.01 0.16 1000.63 1.44 119% 11 35B01 35B02 338.87 0.49 3.5 1186.05 1.71 15 331 166.03 165.50 0.16 1006.25 1.45 118% 12 35B12 35B01 333.12 0.48 3.5 1165.92 1.68 15 331 166.56 166.03 0.16 1005.19 1.45 116% 13 35B13 35B12 324.23 0.47 3.5 1134.81 1.63 15 333 167.09 166.56 0.16 1002.16 1.44 113% 14 35A01 35B13 313.46 0.45 3.5 1097.11 1.58 12 332 167.87 167.17 0.21 636.08 0.92 172% 15 35A02 35A01 307.97 0.44 3.5 1077.90 1.55 12 443 168.76 167.87 0.20 620.97 0.89 174% 16 35A03 35A02 304.82 0.44 3.5 1066.87 1.54 12 332 169.42 168.76 0.20 617.64 0.89 173% 17 35A04 35A03 295.93 0.43 3.5 1035.76 1.49 12 332 170.08 169.42 0.20 617.64 0.89 168% 18 35A14 35A04 284.41 0.41 3.5 995.44 1.43 12 332 170.74 170.08 0.20 617.64 0.89 161% 19 35A13 35A14 273.18 0.39 3.6 983.45 1.42 12 217 171.17 170.74 0.20 617.35 0.89 159% 20 35A12 35A13 269.57 0.39 3.6 970.45 1.40 12 332 171.83 171.17 0.20 617.64 0.89 157% 21 35A72 35A12 233.40 0.34 3.6 840.24 1.21 10 237 172.56 172.02 0.23 406.55 0.59 207% 22 35A11 35A72 233.40 0.34 3.6 840.24 1.21 10 95 172.78 172.56 0.23 410.13 0.59 205% 23 35A65 35A11 151.29 0.22 3.8 574.90 0.83 10 88 173.30 172.78 0.59 655.14 0.94 88% 24 35A66 35A65 151.29 0.22 3.8 574.90 0.83 10 93 173.70 173.30 0.43 558.94 0.80 103% 25 35A10 35A66 151.29 0.22 3.8 574.90 0.83 10 151 174.50 173.80 0.46 579.70 0.83 99% 26 36B01 35A10 136.18 0.20 3.8 517.48 0.75 10 318 184.49 174.50 3.14 1509.88 2.17 34% 27 35A37 35A11 5.31 0.01 4.0 21.24 0.03 8 330 179.72 172.86 2.08 677.73 0.98 3% 28 35A38 35A37 4.08 0.01 4.0 16.32 0.02 8 330 186.58 179.72 2.08 677.73 0.98 2% 29 35A39 35A38 3.40 0.00 4.0 13.60 0.02 8 370 189.50 186.58 0.79 417.58 0.60 3% Table 2-2: Proposed Pipe Capacity - 550 Unit Development Only Pipe ID Node ID #Base Flow Peaking Factor Peak Flow Capacity 127 Item 4. Size Length US Invert DS Invert Slope Sanitary Sewer % Full From To (gpm) (MGD)(gpm) (MGD) (in) (ft) (ft) (ft) (%) (gpm) (MGD)(%) 35B19 35B84 867.03 1.25 3.1 2687.79 3.87 30 400 111.44 111.13 0.08 4441.72 6.40 61% 35B18 35B19 771.43 1.11 3.1 2391.43 3.44 30 306 111.69 111.44 0.08 4560.47 6.57 52% 35B06 35B18 771.43 1.11 3.1 2391.43 3.44 30 305 111.93 111.69 0.08 4475.65 6.44 53% 35B07 35B06 771.43 1.11 3.1 2391.43 3.44 30 329 112.19 111.93 0.08 4485.27 6.46 53% 35B08 35B07 769.38 1.11 3.1 2385.08 3.43 24 333 113.19 112.19 0.30 4820.82 6.94 49% 35B09 35B08 369.81 0.53 3.4 1257.35 1.81 15 333 142.35 131.02 3.40 4633.57 6.67 27% 35B10 35B09 366.94 0.53 3.4 1247.60 1.80 15 333 158.28 142.35 4.78 5494.26 7.91 23% 35B11 35B10 361.14 0.52 3.4 1227.88 1.77 15 331 159.01 158.28 0.22 1180.23 1.70 104% 35B03 35B11 352.95 0.51 3.4 1200.03 1.73 15 335 165.01 159.01 1.79 3361.84 4.84 36% 35B02 35B03 347.89 0.50 3.4 1182.83 1.70 15 309 165.50 165.01 0.16 1000.63 1.44 118% 35B01 35B02 347.89 0.50 3.4 1182.83 1.70 15 331 166.03 165.50 0.16 1006.25 1.45 118% 35B12 35B01 342.14 0.49 3.5 1197.49 1.72 15 331 166.56 166.03 0.16 1005.19 1.45 119% 35B13 35B12 333.25 0.48 3.5 1166.38 1.68 15 333 167.09 166.56 0.16 1002.16 1.44 116% 35A01 35B13 322.48 0.46 3.5 1128.68 1.63 12 332 167.87 167.17 0.21 636.08 0.92 177% 35A02 35A01 316.99 0.46 3.5 1109.47 1.60 12 443 168.76 167.87 0.20 620.97 0.89 179% 35A03 35A02 313.84 0.45 3.5 1098.44 1.58 12 332 169.42 168.76 0.20 617.64 0.89 178% 35A04 35A03 304.95 0.44 3.5 1067.33 1.54 12 332 170.08 169.42 0.20 617.64 0.89 173% 35A14 35A04 293.43 0.42 3.5 1027.01 1.48 12 332 170.74 170.08 0.20 617.64 0.89 166% 35A13 35A14 282.20 0.41 3.5 987.70 1.42 12 217 171.17 170.74 0.20 617.35 0.89 160% 35A12 35A13 278.59 0.40 3.5 975.07 1.40 12 332 171.83 171.17 0.20 617.64 0.89 158% 35A72 35A12 242.42 0.35 3.6 872.71 1.26 10 237 172.56 172.02 0.23 406.55 0.59 215% 35A11 35A72 242.42 0.35 3.6 872.71 1.26 10 95 172.78 172.56 0.23 410.13 0.59 213% 35A65 35A11 151.29 0.22 3.8 574.90 0.83 10 88 173.30 172.78 0.59 655.14 0.94 88% 35A66 35A65 151.29 0.22 3.8 574.90 0.83 10 93 173.70 173.30 0.43 558.94 0.80 103% 35A10 35A66 151.29 0.22 3.8 574.90 0.83 10 151 174.50 173.80 0.46 579.70 0.83 99% 36B01 35A10 136.18 0.20 3.8 517.48 0.75 10 318 184.49 174.50 3.14 1509.88 2.17 34% 35A37 35A11 14.33 0.02 4.0 57.32 0.08 8 330 179.72 172.86 2.08 677.73 0.98 8% 35A38 35A37 13.10 0.02 4.0 52.40 0.08 8 330 186.58 179.72 2.08 677.73 0.98 8% 35A39 35A38 3.40 0.00 4.0 13.60 0.02 8 370 189.50 186.58 0.79 417.58 0.60 3% Table 2-3: Proposed Pipe Capacity - Full Build Node ID #Base Flow Peaking Factor Peak Flow Capacity 128 Item 4. Length From To (ft) 35B19 35B84 400 30 61%30 61% 35B18 35B19 306 30 52%30 52% 35B06 35B18 305 30 53%30 53% 35B07 35B06 329 30 53%30 53% 35B08 35B07 333 24 49%24 49% 35B09 35B08 333 15 27%18 77% 35B10 35B09 333 15 23%18 76% 35B11 35B10 331 15 104%18 22% 35B03 35B11 335 15 36%18 16% 35B02 35B03 309 15 118%18 13% 35B01 35B02 331 15 118%18 62% 35B12 35B01 331 15 119%18 73% 35B13 35B12 333 15 116%18 71% 35A01 35B13 332 12 177%18 60% 35A02 35A01 443 12 179%18 61% 35A03 35A02 332 12 178%18 60% 35A04 35A03 332 12 173%18 58% 35A14 35A04 332 12 166%18 56% 35A13 35A14 217 12 160%18 54% 35A12 35A13 332 12 158%18 53% 35A72 35A12 237 10 215%15 72% 35A11 35A72 95 10 213%15 72% 35A65 35A11 88 10 88%12 54% 35A66 35A65 93 10 103%12 63% 35A10 35A66 151 10 99%12 61% 36B01 35A10 318 10 34%10 34% 35A37 35A11 330 8 8%8 8% 35A38 35A37 330 8 8%8 8% 35A39 35A38 370 8 3%8 3% Table 3 - Proposed Pipe Upsizing Existing Pipe Size (in) Future Sanitary Sewer % Full - Pre-Upsize Future Pipe Size (in) Future Sanitary Sewer % Full - Post Upsize Node ID # 129 Item 4. CITY COUNCIL WORK SESSION AGENDA SECTION WORK SESSION ITEMS MEETING DATE JUNE 7, 2021 ITEM: 2021 Updates to Stormwater Plan DEPARTMENT: Public Works BY/DATE: Kevin Hansen 6/03/2021 CITY STRATEGY: (please indicate areas that apply by adding a bold “X” in front of the selected text below) _Safe Community _Diverse, Welcoming “Small-Town” Feel _Economic Strength _Excellent Housing/Neighborhoods _Equity and Affordability X_Strong Infrastructure/Public Services _Opportunities for Play and Learning _Engaged, Multi-Generational, Multi-Cultural Population BACKGROUND: The City of Columbia Heights has been a MS4 (Municipal Separate Storm Sewer System) City since 2003. As an MS4, we are required to submit a permit for the operation of our storm sewer system to the Minnesota Pollution Control Agency, MPCA, which includes a Storm Water Pollution Preven tion Program, or SWPPP. Permits are for 5 year periods and must be renewed prior to or at the end of the permit cycle. We submitted the 4th generation of our MS4 permit in 2020. A copy of our Storm Water Plan and SWPPP is on the City website and located here: https://www.columbiaheightsmn.gov/departments/public_works/swppp.php As I have noted in recent budget reviews with the City Council and in past work sessions, each cycle of the MS4 permitting process had become more involved requiring a higher level of effort by staff to meet the requirements of the permit. This new cycle again has additional requirements and is more involved related to staff effort. To clearly define both timeframes and what the items are, our MS4 consultant has put together a Program Review specific to our Storm Water Plan and SWPPP, and is attached herein. The purpose of this memo is informational and as a preface to 2021 ordinance changes. ATTACHMENT(S): WSB Program Review Memo 4/29/2021 130 Item 5. K:\013413-000\Admin\Docs\2021 MS4 AR\1. Permit Application 7 0 1 X E N I A A V E N U E S | S U I T E 3 0 0 | M I N N E A P O L I S , M N | 55 4 1 6 | 7 6 3 . 5 4 1 . 4 8 0 0 | W S B E N G . C O M Memorandum To: Lauren Letsche, City of Columbia Heights Kevin Hansen, City of Columbia Heights From: Meghan Litsey, WSB Joel Sundeen, WSB Date: April 29, 2021 Re: MS4 Program Review Summary The City of Columbia Heights (City) authorized WSB to complete an assessment of their current program compared to the revised MS4 Permit that was reissued in November 2020. The following summary is the result of the program assessment from an evaluation of the City’s MS4 SWPPP and discussions with key MS4 program staff. Program Assessment The goal of the MS4 program assessment is to evaluate the City’s SWPPP and supporting documents to determine areas of compliance and identify areas where the program can be strengthened to comply with the updated MS4 Permit. The program assessment revealed that the City has a solid program with employees that care about addressing the issues of concern and complying with the rules of the MS4 Permit. City staff should be commended for their approach to managing the MS4 program. Some program specifics include: • Active participation and cooperation with local partners to facilitate public education and outreach efforts. • Engaged field staff who are well-trained in illicit discharge detection and elimination and good housekeeping practices. • Organized and efficient MS4 documentation and recordkeeping. • Comprehensive Surface Water Design Management Standards and plan review process. • Established and dedicated winter maintenance staff and protocols that effectively manage the amount of deicing salt applied each winter maintenance season. Summary of Recommendations The City’s MS4 program is working to achieve the goals of their existing MS4 Permit. With the recent MS4 Permit update in November 2020, some portions of the City’s MS4 program must be updated to comply with new requirements. Following the approval of the City’s MS4 Reauthorization Application by the MPCA, the City will have 12 months to complete any necessary updates. The following recommendations are designed to help the City achieve compliance with the revised MS4 Permit. Program Management • The City’s SWPPP should be updated to include new or revised BMP activities, person responsible for overseeing each activity, date each activity is completed, action that is completed, and any follow-up action that is generated as a result of that activity, and any documents that correlate with that activity. 131 Item 5. City of Columbia Heights April 29, 2021 Page 2 • Conduct an annual assessment of the City’s MS4-related programs to evaluate program compliance, the status of achieving the measurable requirements, and how program areas might be improved. The following programs must be reviewed and documented annually: o Public Education and Outreach o Public Participation o Illicit Discharge Detection and Elimination o Construction Site Stormwater Runoff Control o Post-Construction Stormwater Management o Public Works/Operations and Maintenance MCM 1: Public Education • Update the education and outreach plan to include: o Two (2) high priority stormwater-related issue(s) to emphasize o Target audiences o Schedule of activities to reach measurable goals for each target audience o Description of coordination with partners related to stormwater education o Annual evaluation to measure how measurable goals are being met for each target audience • Consider target audiences, such as low-income residents, people of color, and non- native English-speaking residents. • Distribute educational materials focused on deicing salt use to businesses, commercial facilities, and institutions. • Continue to distribute educational materials focused on pet waste to residents. Ensure educational materials reference the City’s ordinance for pet waste management. • Increase public awareness of illicit discharges by sharing messages on how to identify and where to report this information through various media outlets. MCM 2: Public Participation • Ensure all relevant input submitted by persons regarding the SWPPP is documented, as well as responses from the City to the written input received, and any program modifications made because of the input. • Ensure dates, locations, and estimated number of participants are recorded for annual events and other activities with a water quality or pollution prevention theme. MCM 3: Illicit Discharge Detection & Elimination (IDDE) • Amend ordinances to require proper salt storage at commercial, institutional, and non- NPDES permitted industrial facilities • Amend ordinances to require owners or custodians of pets to remove and properly dispose of feces from City-owned land areas. • Update written procedures and enforcement response procedures for illicit discharge detection and elimination, including timeframes for investigation, tools to investigate and locate an illicit discharge, cleanup methods to remove an illicit discharge or spill, and methods to compel compliance with the City’s illicit discharge ordinance, pet waste and salt storage ordinances. 132 Item 5. City of Columbia Heights April 29, 2021 Page 3 • Consider using an enforcement action tracking log or an equivalent mechanism to compile and organize enforcement action information. Ensure date violations have been resolved are recorded. • Complete and document additional inspection of high priority illicit discharge areas at a frequency determined by the City. • Ensure all field staff, including seasonal staff, continue to attend annual illicit discharge training. Field staff must include police and fire department staff, in addition to staff in public works, engineering, parks, etc. MCM 4: Construction Site Runoff Control • Supplement existing written procedures outlining the plan review process to describe the written notification to owners/operators to apply for and obtain coverage under the CSW Permit, and the use of a written checklist to document the adequacy of each site plan required. • During the plan review process require applicants to provide proof of coverage under the NPDES CSW Permit. In addition, document stormwater-related comments and the supporting completed checklist to determine project approval or denial for all projects requiring an NPDES CSW Permit. • Consider using an enforcement action tracking log or an equivalent mechanism to compile and organize enforcement action information. Ensure verbal warnings are documented as enforcement to compel compliance with the City’s ordinances and the NPDES Construction Stormwater Permit and the date violations have been resolved are recorded. • Supplement existing written procedures for construction site inspection to clarify process for determining construction site prioritization, and inspection frequencies for priority versus non-priority sites. • Update the existing erosion control inspection form to include review of owner/operator of construction activity self-inspection records. MCM 5: Post-Construction Stormwater Management • Update the Surface Water Design Standards document to address new water quality volume standards, as well as any City-specific erosion control and post-construction stormwater requirements. • Supplement existing written procedures outlining training requirements, the plan review process and management of the inventory of private structural stormwater BMPs. • Develop an inventory of private structural stormwater BMPs and corresponding executed maintenance agreements for BMPs executed on or after August 1, 2013. • Ensure private post-construction stormwater BMPs receive inspection and maintenance by receipt of inspection reports and/or maintenance logs submitted by the private owner(s). Complete follow-up inspections to ensure BMPs meet the purpose of the post- construction stormwater management standard, when needed. 133 Item 5. City of Columbia Heights April 29, 2021 Page 4 MCM 6: Good Housekeeping & Pollution Prevention for Municipal Operations • Update the existing written procedures for good housekeeping to describe BMPs implemented at City-owned/operated salt storage areas, and current methods to track the amount of deicer applied each winter maintenance season to City -owned/operated surfaces. • Ensure staff involved with winter maintenance activities continue to receive annual training on the importance of protecting water quality, BMPs to minimize the use of deicers, and other tools and resources to assist in winter maintenance. Ensure attendance is recorded annually. • Ensure field staff continue to receive annual training on the importance of protecting water quality, requirements of the permit that are relevant to their responsibilities, and a schedule to facilitate training intervals to address changes in procedures and staff. Ensure participation is recorded. • Continue to document dates and findings associated with the C ity’s operations and maintenance program. Document the schedule for maintenance of structural stormwater BMPs and outfalls cannot be completed within one year of discovery. Discharges to Impaired Waters and Waste Load Allocations • Develop an inventory of potential areas and sources of bacteria. After the inventory is generated, develop a plan to prioritize reduction activities to address the areas and sources identified in the inventory. • Continue to track the amount of deicer applied each winter maintenance season to all City-owned/operated surfaces. Supplement the City’s Snow and Ice Management Policy to include an annual assessment of winter maintenance operations to reduce the amount of deicing salt applied, and to determine current and future opportunities to improve BMPs. Thank you for the opportunity to review the City’s MS4 program. Should you have questions or wish to discuss further, please contact me at 612-723-9166 or mlitsey@wsbeng.com. 134 Item 5. CITY COUNCIL WORK SESSION AGENDA SECTION WORK SESSION ITEMS MEETING DATE JUNE 7, 2021 ITEM: Maintaining Affordable Rental Properties DEPARTMENT: Administration BY/DATE: Kelli Bourgeois, 6/4/21 CITY STRATEGY: (please indicate areas that apply by adding a bold “X” in front of the selected text below) _Safe Community _Diverse, Welcoming “Small-Town” Feel _Economic Strength _Excellent Housing/Neighborhoods _Equity and Affordability _Strong Infrastructure/Public Services _Opportunities for Play and Learning _Engaged, Multi-Generational, Multi-Cultural Population BACKGROUND: Councilmember Buesgens requested to have this item added to the work session agenda and will speak to it. 135 Item 7.