HomeMy WebLinkAbout8A: Storm Water Fee Justificati
DATE:
AGENDA #:
PREPARED BY:
AGENDA ITEM:
DISCUSSION:
CITY COUNCIL AGENDA REPORT
JANUARY S, 2001
SA
SUE MCDERMOTT, CITY ENGINEER
CONSIDER APPROVAL OF A RESOLUTION APPROVING A STORM WATER
TRUNK FEE JUSTIFICATION REPORT.
HISTORY
As part of the subdivision (land development) process which was used prior to
1998, the City collected a storm water fee of 16.8 cents per square foot for R-1, R-
2, and R-4 developments; 19.5 cents per square foot for R-3 developments; and
20.3 cents for B-1, B-2, B-3, 1-1 and 1-2 developments. Proceeds from these fees
were deposited in the City's Trunk Reserve Fund. The costs for storm water
facilities for the property were reimbursed to the Developer from this fund.
In 1998 the City changed its policy to provide for a Storm Water Trunk Fee and
established the fee at $3,180 per acre (7.3 cents per square foot). Under the trunk
fee policy, the City only participates in the cost of the storm sewer in any given
development on an oversizing (trunk) basis. If we require pipes or ponds to
accommodate the trunk system larger in size than the development itself would
require under current regulations, the oversizing cost will be funded by the Storm
Water Trunk Fee. The development pays all costs associated with its own storm
water drainage needs.
At the City Council's January 3, 2000 meeting the staff recommended and the City
Council authorized Bonestroo, Rosene, Anderlik & Associates, Inc. (BRAA) to
complete a Storm Water Trunk Fee Determination Report.
CURRENT CIRCUMSTANCES
The study develops a storm water area charge rate that is based on a detailed
analysis of future trunk storm water infrastructure needs in the City.
As part of the study, a City trunk storm sewer system is identified in the context of
the local surface water management plan that is a part of the 2020
Comprehensive Plan. A copy of the study is attached to this report. The report
defines trunk facilities as pipes that carry storm water from one drainage district to
another and regional ponds which serve the entire drainage district or multiple
districts. The report provides detailed cost estimates for each of the proposed
trunk facilities, including easement acquisition and indirect costs.
During the development of the study, City staff and the consultant met with
representatives from the Twin City Builder's Association who provided a portion of
the funding for this study. Issues that came up centered around methodology,
unit pricing and clarification of trunk facility definitions.
1~~.f;agle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
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.
ISSUES
Based on a total trunk system cost of $6,041,288, the following equivalent acre
area charges based on land use are proposed:
Area Charge Rates
Land Use EAC Factor Charge/Acre
($/EqAc) (multiplier) ($/ Ac)
Low Density Residential 2,943 1.00 2,943
High Density Residential 2,943 1.65 4,856
Commercial 2,943 2.07 6,092
As shown in the table, a sliding scale of area charges is proposed with
three different rates applying to different land uses depending on the
amount of impervious surface the land use entails, which is directly
proportional to the stormwater runoff generated by the land use.
By charging all new developments these rates, the City is assured of
collecting the amount of funding necessary to construct the trunk facilities
outlined in the Report. These fees are to be adjusted annually with the
Construction Cost Index
One key aspect of the report is that the future Prior Lake Outlet and/or
Channel improvement costs have not been considered for the trunk area
charges calculated in the report for a number of reasons. At this time the
costs of these future improvements have not been identified, nor has the
cost sharing method between the Watershed District and the member cities
of Shakopee and Prior Lake. Secondly, not all of Prior Lake is within the
watershed of the Prior Lake Spring Lake Watershed District and there need
to be some policy decisions made regarding the cost sharing for District
projects. These can be discussed and determined in the CIP process in
2001. A joint meeting with the district to discuss these issues may be
useful.
FINANCIAL IMPACT: Upon adoption of the recommended fees the revenues should cover the
expenses incurred over the time to fully develop the system.
ALTERNATIVES: The alternatives are as follows:
1. Approve a Resolution adopting the Storm Water Trunk Fees as
proposed.
TRKFEEtinal
RECOMMENDED
MOTION:
REVIEWED BY:
TRKFEEtinal
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2. Table this Agenda item for a specific reason.
3. Deny this Agenda item for a specific reason.
Motion and second to adopt a Resolution adopting the Storm Water
Trunk Fees and inc rporating them into the City's 2001 fee schedule.
...
MOTION BY:
RESOLUTION O~
A RESOLUTION ADOPTING STORM WATER TRUNK FEES
SECOND BY:
WHEREAS, development within the City requires the construction of storm water
improvements, and
WHEREAS, trunk facilities related to the construction of these storm water improvements are
required by the City and have been funded in the past by the City, and
WHEREAS, a study has been completed which projects the cost of future trunk facilities, and
recommends the Trunk Area fees necessary to pay for these facilities which will be
charged to future development, and
WHEREAS, the study concludes that differing rates shall apply to different land uses depending
on the amount of impervious land surface, and
WHEREAS, it is the City Council's desire to have a fair and equitable funding mechanism for
these storm water trunk facility improvements and this study confirms the
appropriateness of the Trunk Area Fees.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE,
MINNESOTA,
1. That the recitals set forth above are incorporated at this point as findings of
fact.
2. That a Storm Water Trunk Fee is hereby adopted at rates of $2,943 per acre
for low density residential, $4,856 per acre for high density residential and
$6,092 per acre for commercial land use applied to all developments
henceforth.
3. The City Manager is directed to incorporate these fees, effective upon passage
and publication in the 2001 Fee Schedule.
4. The fees will be adjusted for the future years based upon the Construction Cost
Index for the most recent twelve-month period.
G~$~f"lUlk$t6fmfeeidOOke, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
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II.
Passed and adopted this 8th day of January, 2001.
YES
NO
Mader Mader
Ericson Ericson
Gundlach Gundlach
Petersen Petersen
Zieske Zieske
{Seal}
Frank Boyles
City Manager
City of Prior Lake
G:\RESOLOO\trunkstormfee.doc