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HomeMy WebLinkAbout10E - Storm Water Fee Ord Amd MEETING DATE: AGENDA No.: PREPARED BY: AGENDA ITEM: DISCUSSION: July 21, 2003 10E Bud Osmundson, Director of Public Works CONSIDER APPROVAL OF RESOLUTION AMENDING CITY CODE SECTION 707, STORM WATER MANAGEMENT, AND REVISING THE STORM WATER MANAGEMENT FEE. Historv: The Storm Water Management Ordinance and associated utility fees were adopted by the City Council in January, 1993. The purpose of this ordinance was to create a dedicated enterprise fund to pay for storm water management planning, capital expenditures and maintenance. The City of Prior Lake is a recreation based community; protecting the water quality of its lakes through the creation of this utility was the right thing to do. The City has utilized this utility to fund numerous storm water management and water quality improvements as identified in the Capital Improvement Plan. The amount of this utility fee has not been modified since its establishment in 1993. The purpose of this agenda item is to have the City Council consider amending the Storm Water Management ordinance and adopting an interim Storm Water Management utility rate adjustment with an increase of $2.25 per bi-monthly period (from its current rate of $3.75 to $6.00) Current Circumstances: Since 1993 many of the state and federal statutes and rules governing storm water have been tightened, requiring more funding for storm water management programs. The Federal government, as part of the Water Pollution Control Act, has required that Prior Lake adopt the National Pollutant Discharge Elimination System Phase II rules, which were completed earlier this year. This requires the City to have a specific storm water management plan, perform specific maintenance procedures, have written documentation of the performed maintenance, an accounting system of storm water management facilities, and training of appropriate personnel. The State's Wetland Conservation Act has been revised since 1991 and now requires additional management activities. The Prior Lake Spring Lake Watershed District has very specific rules, which the City has to follow including infiltration requirements and water quality restrictions. The Watershed District permitting requirements have added well over $200,000 in storm water quality facilities to the last three City street reconstruction projects. 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (952) 447-4230 / Fax (952) 447-4245 C:\Docurnents and Settings\KellyM\Local Settings\Tern~lntMmItll(iiIi:;,s'\(iID~~approv SWM ord and fees1.DOC ISSUES: ALTERNATIVES: The recently adopted 2004 - 2008 Capital Improvement Plan has projected approximately $870,000 in capital expenditures from the Storm Water Management fund. The projected CIP balance at the end of this 5-year period is $311,000. However, this does not include the operating expenses, which amount to approximately $140,000 in 2003, and are projected to be higher in 2004 through 2008. The current Storm Water Management fund balance is approximately $50,835 (as of July 1, 2003). This fund is required to pay approximately $80,000 in storm water management improvements as part of the 2003 street reconstruction project, plus salary, supplies and other expenses for the remainder of the year, which totals the $140,000. In the short term, the fund balance will end this year in a negative position. Staff will be bringing a proposal to the City Council in the next month to complete a comprehensive fee study for the water, sanitary sewer and storm water management utility rates to be completed by the end of the year. However, staff feels it is necessary to adjust the storm water management fees now on an interim basis from $3.75 to $6.00 per bimonthly billing period until a new fee is provided through this study. This amounts to a $1.125 increase per month in the storm water management fees, which have not increased since 1993. Outlined below is a table of stormwater fees charged by neighboring communities, including our proposed increase, converted to a monthly amount: Munici alit Stormwater Char e Prior Lake* $3.00 Bloomin ton $3.65 A Ie Valle $3.98 Shako ee $4.00 Sava e $4.75 *proposed The question is whether or not to raise the Storm Water Management utility fees on an interim basis or wait until the fee study is complete. Staff would recommend that the interim increase be adopted, based upon the financial justification set forth above. Revision of the fee requires two steps. First, the ordinance should be adopted amending Section 707 of the City Code to allow the City Council to establish this fee from time to time as part of the City's fee schedule. Both an adoptable version and complete text of the ordinance is attached. The second step is to adopt a motion amending the 2003 Fee Schedule. (1) Adopt an Ordinance amending City Code Section 707 of the Prior Lake City Code relating to the Storm Water Management Fee. (2) Motion and Second amending the 2003 Fee Schedule revising the storm water management fees on a interim basis. (3) Take no action. C:\Docurnents and Settings\KellyM\Local Settings\Ternporary Internet Files\OLKI87\Agenda approv SWM ord and fees 1. DOC RECOMMENDED MOTION: REVIEWED BY: Alternatives (1) and (2). C:\Docurnents and Settings\KellyM\Local Settings\Temporary Internet Files\OLKI87\Agenda approv SWM ord and fees I. DOC CITY OF PRIOR LAKE ORDINANCE NO. 03- XX AN ORDINANCE AMENDING SECTION 707 OF THE PRIOR LAKE CITY CODE PERTAINING TO STORM WATER MANAGEMENT The City Council of the City of Prior Lake does hereby ordain that: 1. Section 707.200 of the Prior Lake City Code is hereby amended as follows: Storm Water Management Fee: The bi FRonthly charge for each parcel of nonexempt property in the City for the management of storm water. 2. Section 707.302(1) of the Prior Lake City Code is hereby amended as follows: (1) The SFR rate will be tl:u:ee ~ollaFS se'.'eAty fi'Ie Gents ($3.75) periodically determined and set by the City Council per I:.IAit !:li mOAtAly chaF€le. 3. Section 707.302(2) of the Prior Lake City Code is hereby amended as follows: (2) The per acre fee for all individual parcels other than SFR shall be defined as the product of the acreage SFR fee of olo'/eR dollaFS P.'.'ORty fivo COAts ($11.213) por acr-e based upon a tAFee dollaFS se'.'enty fj'le cents ($J.75) por I:.Init aR€l a one-third acre lot, the appropriate utility factor based on land use, and the total acreage of the parcel. 4. Section 707.500 of the Prior Lake City Code is hereby amended as follows: Exemptions: The following land uses are exempt form this storm water management fee: ~ Public right-of-way ~ Lakes ~ Wetland (with easements dedicated to the City). ~ Municipal owned property. ~ Open Space (cemeteries, golf courses) ~ Vacan and unoccupied parcels such as agricultural and conservation zoned land that does not have a residential or commercial building on the parcel. School !')ropeFties ar-e exeFRpte~ from this I:.Itility fee for the 1 QQJ !:lillings. 5. Section 707.600 of the Prior Lake City Code is hereby amended as follows: Payment of Fee: Storm water management fee shall be invoiced bi FRonthly as determined by the City Council and included with the water and sanitary sewer utility billing. TAe aFROI:.IAt ~l:.Ie as shown on the invoice shall bo payablo on or !:lefor=e tAe p.\'oRtieth €lay of tho mantA in which tho invoice is issl:.lod. r:\ordinanc\storm water managernent fee. doc PAGE I 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (952) 447-4230 / Fax (952) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER This ordinance shall become effective from and after its passage and publication. Passed by the City Council of the City of Prior Lake this 21 sl day of July, 2003. ATTEST: City Manager Mayor Drafted By: City of Prior Lake 16200 Eagle Creek Avenue Prior Lake, MN 55372 r:\ordinanc\storm water managernent fee.doc PAGE 2 SUBSECTIONS: 707.100: 707.200: 707.300: 707.400: 707.500: 707.600: 707.700: 707.800: 707.900: EXHIBIT A SECTION 707 STORM WATER MANAGEMENT UTILITY ESTABLISHED DEFINITIONS STORM WATER MANAGEMENT FEE CREDITS EXEMPTIONS PAYMENT OF FEE APPEAL OF FEE CERTIFICATION OF DELINQUENT FEES STORM WATER MANAGEMENT FUND 707.100: 707.200: UTILITY ESTABLISHED: A storm water management utility is hereby established in the City. DEFINITIONS: The following words, terms and phrases, when used in this Section, shall have the meaning ascribed to them in this subsection, except where the context clearly indicates a different meaning: Storm Water Management Budget The annual budget approved by the City Council for storm water management including planning, monitoring, capital expenditures, maintenance, land acquisition, personnel and equipment. Storm Water Management Fee: The bi monthly charge for each parcel of nonexempt property in the City for the management of storm water. Utility Factor. The ratio of runoff volume, in inches, for a particular land use, to the runoff volume, in inches, for a one-third acre residential lot, assuming a four and two-tenths inch (4.2") (10-year storm) rainfall and Soil Conservation Service (SCS) "Type B" soil conditions. 707.300: STORM WATER MANAGEMENT FEE: 707.301 The utility factors for various land uses are as follows: Classification Land Use Utility Factor 1 Single-Family Residential 1.00 (SFR) (1/3= acre lots) 2 Multiple-dwelling units 1.65 ( residential) 3 Business / Commercial 2.07 4 Industrial 1.82 5 Institutional (schools, 1.38 churches and govt. buildings) Agricultural and conservation zoned areas which have a residential or commercial building on the property will be considered an SFR classification and be charged the SFR unit rate. Planned unit development zoning and government agency parcels other than the City will be charged at the rate deemed most appropriate for each individual parcel. 707.302 The storm water management fee for use on storm water facilities shall be determined by the following steps: (1) The SFR rate will be three dollars seventy five cents ($3.75) periodically determined and set by the City Council per unit bi monthly ch3rgo. (2) The per acre fee for all individual parcels other than SFR shall be defined as the product of the acreage SFR fee of olovon dollars twenty flvo contE: ($11.25) per acre (based on a three dollars seventy five cents ($3.75) per unit and a one-third acre lot), the appropriate utility factor based on land use, and the total acreage of the parcel. (3) A minimum of one-third acre shall be computed for commercial site locations within agricultural and conservation land areas. 707.400: CREDITS: The City Council, in its discretion, may adopt policies for adjustment of the storm water management fee. Information to justify a fee adjustment must be supplied by the property owner. 707.500: EXEMPTIONS: The following land uses are exempt from this storm water management fee: ~ Public right of way. ~ Lakes. ~ Wetland (with easements dedicated to the City). ~ Municipal owned property. ~ Open space (cemeteries, golf courses). ~ Vacant and unoccupied parcels such as agricultural and conservation zoned land that does not have a residential or commercial building on the parcel. School properties are exomptod from this utility fee for the 1993 billings. 707.600: 707.700: 707.800: 707.900: PAYMENT OF FEE: Storm water management fee shall be invoiced bi monthly as determined by the City Council and included with the water and sanitary sewer utility billing. The amount due as shown on the invoice shall be payable on or before the twentieth day of the month in which the invoice is issued. ApPEAL OF FEE: If a property owner or person responsible for paying the storm water management fee believes that a particular fee is incorrect, such person may file a written appeal with the City Manager. Appeals will be heard by the City Council. No adjustment will be made to the utility factor for property classifications. CERTIFICATION OF DELINQUENT FEES: If a storm water management fee remains unpaid for a period of (90) days, after it becomes delinquent, the same shall constitute a lien on the real estate subject to an interest rate of eight percent (8%) per annum and the Finance Director shall forthwith file a lien against the real estate for the unpaid amount of the bill, notifying by mail the owner of the real estate of said fact. In the event that it becomes necessary for the Finance Director to file such a lien on the real estate, then and in that event, an additional fee of ten dollars ($10.00) shall be charged and added to the bill and the lien when filed. STORM WATER MANAGEMENT FUND: All of the storm water management fee pursuant to this Section shall be collected and deposited in a separate fund. Said fund shall show a separate accounting for all collections and expenditures.