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4646 Dakota Street SE
rmso Prior Lake, MN 55372
CITY COUNCIL AGENDA REPORT
MEETING DATE: APRIL 4, 2011
AGENDA #: 10B
PREPARED BY: JERILYN ERICKSON, FINANCE DIRECTOR
PRESENTED BY: JERILYN ERICKSON
AGENDA ITEM: CONSIDER APPROVAL OF A REPORT ON LAND USE INCENTIVE TRAINING
DISCUSSION: Introduction
The purpose of this agenda item is to present information on the Land Use
Incentive Program, a property /casualty program incentive that is offered by
the League of Minnesota Cities Insurance Trust ( LMCIT).
History
Several months ago, the LMCIT started offering a new incentive program to
reward Property /Casualty members that successfully complete an online
training course about land -use decision making. Cities that meet the
training requirements will earn a savings of as much as $3,750.00 per land
use claim Cities that do not meet the training requirements will pay a
higher rate of land use costs.
The website -based training is designed to make land use decisions less
confusing. Officials also learn about the sometimes tense and charged
discussions that occur when trying to balance the goals of the community
against individual rights.
The training will help cities avoid expensive land use claims and lawsuits,
currently the largest area of loss for members. These claims cost LMCIT
members about $3 million per year. The average cost of a land use claim
is $35,000, more than 85 percent of which is spent to cover defense costs.
In other words, these claims generally are not about paying damages to
someone but rather about paying for legal defense of the city.
The incentive is available on an ongoing basis to all member cities that
certify at their renewal that the following city officials successfully
completed the training:
• A quorum of the city council;
• The chair and another planning commission member;
• The city planner or another staff person with lead responsibility for
planning activities.
Cities can qualify for the incentive at any time by meeting the training
requirement, at which point the city will receive an endorsement. Any land
use claims made against the city after receiving the endorsement will
qualify for the savings.
The cost for the online training is $30 per person. After six paid
registrations, each additional registrant from the city can sign up for this
course at no charge. The maximum charge is $180 per city.
Current Circumstances
The first course in the Land Use series (Land Use Basics — Grasping the
Ground Rules) is designed to assist cities understand their roles and
authority in land use regulation to more effectively navigate controversial
situations. Additional courses in this series will be made available in 2011
and will cover how to write effective land use laws and apply them using a
fair and open process. All the laws, examples and exercises in this training
series will apply specifically to Minnesota cities.
ISSUES: As previously mentioned, the following city officials are required to
successfully pass the training in order to earn a savings on the cost of land
use claims:
• A quorum of the city council;
• The chair and another planning commission member;
• The city planner or another staff person with lead responsibility for
planning activities.
Staff believes it might be beneficial if ALL council members, planning
commissioners and EDA commissioners take the online training.
While we are awaiting confirmation from the League, I believe it is fair to
assume that to retain eligibility to the incentive program, City
representatives will have to enroll in new land use education classes as
they are offered.
FINANCIAL Cities that meet the training requirements will earn a savings of as much as
IMPACT: $3,750.00 per land use claim Cities that do not meet the training
requirements will pay a higher rate of land use costs.
The cost for the online training is $30 per person. After six paid
registrations, each additional registrant from the city can sign up for this
course at no charge. The maximum charge is $180 per city.
ALTERNATIVES: 1. Approval of the report with the recommendation that all council
members, planning commissioners and EDA commissioners take the
online training.
2. Deny this agenda item for a specific reason and provide staff with
direction.
3. Table this item to a certain date in the future.
RECOMMENDED Alternative #1.
MOTION: I
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