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Home My WebLink About6A - Storm Water Fee Study MEETING DATE: AGENDA #: PREPARED BY:. AGENDA ITEM: PRESENTATION: CITY COUNCIL AGENDA REPORT December 4, 2000 ~'\ " :~nk Boyles, City Manag~ PRESENTATION ON STORM WATER FEE STUDY RESULTS (BOB BARTH) The City Attorney has recommended that the City's fees be analyzed from time to time to assure that they are sufficient to provide the resources for their intended purpose and consistent with statute and case law. In January of this year, the City Council authorized Bonestroo, Anderlik and Associates to conduct a study of they Stormwater Area Charge. Enclosed for your information is the approving resolution and the study proposal. The report has now been completed. The results have been reviewed with representatives of the Twin City area Builders Association who have been kept apprised of the study's progress. Mr. Bob Barth, project manager, will make a brief presentation to the City Council regarding the study. This is an opportunity for the Council to ask questions about study methodology or results. The Council will be asked on January 8, 2001 at its annual meeting to consider incorporating the results of this study into the 2001 Fee Schedule. 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 1:\COUNCIL\AGNRPTS\2000\1204_STORMWPim~IOOaJNITY EMPLOYER RESOLUTION 00-01 AUTHORIZING BRA & ASSOCIATES, INC. TO PREPARE A .~TORM WATER TRUNK FEE JUSTIFICATION REPORT MOTION BY: Petersen SECOND BY:Ericson WHEREAS, the City Council of Prior lake has adopted an interim Storm Water Trunk Fee to be collected from developers within the City limits, and . WHEREAS, the Storm Water Trunk Fees collected will be used to construct the storm water trunk facilities required to be built in the course of development of the City, and WHEREAS, it is the City Council's desire to have a rational basis on which to justify established development fees. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA, BRA & Associates, Inc., is hereby authorized to prepare a Storm Water Fee Justification Report for a fee not to exceed $20,673.00. BE IT FURTHER RESOLVED, that the Mayor and City Manager are authorized to execute the City's Standard Professional Services Contract to complete this project. BE IT FURTHER RESOLVED, funding for this justification report will be from the Trunk Reserve Fund. BE IT FURTHER RESOLVED, that Resolution 99-58 is hereby rescinded in its entirety. Passed and adopted this 3rd day of January, 2000. Mader Ericson Gundlach Peterson Schenck YES X X X X Absent NO {Seal} Mader Ericson Gundlach Peterson Schenck Absent ~0aoo Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN E011AI. OPPORTUNITY EMI 'LOYFR j fI j Bonestroo ~ Rosene - . ~ Anderlrk & ..1 \J 1 Associates Engineers &,Architects EXHIBIT IIAII Boneftroo, Rosene. Anderlik and Associates, inc. is an Affirmative Action/Equal Opportunity Employer Principals: Otto G. B9nestroo. P.E. . Joseph C. Anderlik. P.E. . Marvin lo Sorvala, P.E. . Glenn R. Cook. P.E. . Robert G. Schunicht. P.E. . Jerry A. Bourdon, P.E. . Robert W. Rosene. P.E.. Richard E. Turner. P.E. and Susan M. Eberlin. c.P.A.. Senior Consultants Associate Principals: Howard A. Sanro.rd. P.E. . Keith A. Gordon. P.E. . Robert R. Pfefferle, P.E. . RIChard W. Foster. P.E. . David O. loskota. P.E. . Robert C. Russek, A.I.A. . Mark A. Hanson. P.E. . MIChael T. Rautmann. P.E. . Ted K.Field. P.E. . Kenneth P. Anderson. P.E. . Mark R. Rolfs, P.E. . Sidney P. Williamson. P.E.. loS. . Robert F. Kotsmith . Agnes M. Ring. Allan Rick Schmidt. P.E. Offices: St. Paul. Rochester. Willmar and..St. Cloud. MN. Milwaukee. WI Websile: www.bonestroo.com , . December 13, 1999 Sue McDermott, P.E. Assistant City Engineer City of Prior Lake 16200 Eagle Creek Avenue SE Prior Lake, MN 55372-1714 Dear Ms. McDermott: This letter proposal outlines our understanding of, approach to, and compensation for preparing a storm water trunk fee justification report for the City of Prior Lake. Firm Introduction Bonestroo is a multi-disciplined professional consulting firm with a 43-year history of offering engineering and architectural services throughout the Midwest from its Minnesota offices in St. Paul, Rochester, St: Cloud and WilImar, and its Milwaukee, WI, office. The firm employs more than 300 people, including environmental, civil, Structural and electrical engineers; natural resources scientists; architects and landscape architects; and GIS and construction services specialists. Because Bonestroo determines trunk fee estimates almost routinely as part of a storm water management plan, sanitary sewer plan amI/or water distribution plan, our firm has been involved in more than 30 projects similar to yours. Bob Barth was chosen to lead this effort because of its similarity to a project he recently completed for the City of Woodbury. Project Understanding The City of Prior Lake seeks to update its method of applying storm water trunk fees. To date, the City has not done an in-depth analysis of the costs associated with future trunk facility construction. For this reason, current trunk fees may not accurately represent the true costs associated with trunk facility construction. The Storm Water Trunk Fee Justification Report will establish a defensible method to calculate the per-acre cost of future trunk storm water infrastructure, and thus, limit the City's liability regarding application of trunk fees to developing parcels. The primary challenge faced by the City is developing a rate schedule that is equitable and defensibJe, and yet one that helps ensure the solvency of the City's storm water trunk fund. Land use is one of the primary determinants oftrunk facility sizing. For instance, highly impervious commercial areas require larger ponds and pipes than do residential developments. To more equitably apply the costs of trunk storm water infrastructure, a sliding scale for trunk fees needs to be investigated. The 1996 Prior Lake Local Storm Water Management Plan (SWMP) splits the City into 12 major drainage districts. These districts range in size from 2.8 square miles (Lower Prior Lake District) to 0.7 square miles (West Central Reservation District). The SWMP does not include information on pipes, outlets or future ponds, so this information must be developed within the hydrologic analysis associated 2335 West Highway 36 · St. Paul, MN 55113 · 651-636-4600 . Fax: 651-636-1311 City of Prior Lake December 13,1999 Page 2 with the fee justification report. Based on this hydrologic analysis, a successful fee justification report must develop a method to estimate facility needs, apply costs to these facilities, and then develop trunk fees based on these costs. Coordination with City Staff will be required to identify vacant land and estimate the most likely development-phasing scenario, This operation will detennine the cash flow implications of a given trunk fee schedule. Additionally, the benefits of one single trunk fee must be weighed against the benefits of more than one fee district. Different fee districts might be justified if the initial hydrologic analyses show substantial variety in facility requirements, depending on the drainage district. Project Approach Bonestroo is to look at a 20-year development time frame. The area that might develop within this time frame defines the study area. Til~ project incorporates the following tasks: Task 1: Determine data needs. Define the most probable 20-year development scenario, and thus define the study area. Task 2: Conduct a hydrologic analysis of those major drainage districts (from the SWMP) within the study area. Task 3: Determine the trunk costs, developable acres and corresponding trunk fees for the major drainage districts within the study area Task 4: Determine whether the trunk fee should be applied on a citywide basis or on a Fee District basis. Task 5: Based on a best estimate of potential development phasing, conduct a cost recovery analysis. Task 6: Submit draft and final reports. Present results to Staff and City Council. A discussion of the specific work tasks within each major task category follows: Task 1: Determine data needs. Define the most probably 20-year development scenario, and thus, define the study area. Subtasks include: . Review the Prior Lake Local Stonn Water Management Plan . Collect and review other available data sources, including the Prior Lake Comprehensive Plan, USGS topography and current trunk fee rates. . Using recent development trends and the City's comprehensive plan, determine the specific areas most likely to develop within a 20-year time frame. Task 2: Conduct a hydrologic analysis of those major drainage districts (from the SWMP) within the study area. Subtasks include: ",._'_,..._'_~~'_...._~.."'"~._~"___._"" _.,'._,'..4....'____,_..____,_~,~~",.~.....'__..........~_,_.."~________. ,_.._^.~~,~_",",.__________"___........_.,."."._,_.~._~ City of Prior Lake December 13. 1999 Page 3 · Using the existing SWMP, determine the trunk facilities required to meet the SWMP goals in the major drainage districts that include land within the 20-year development area. These facilities include: .. Ponding areas for water quality and quantity purposes. Excavation volumes will also be determined. Contour maps with two-foot contour intervals are preferred for this subtask. Where these are not available, 10-foot USGS contours will be used. .. Trunk pipes .. Outlet structures Generally, analysis for the first five-year increment will be done to a greater level of detail than the analysis for the subsequent 15 years. This approach concentrates effort on the more immediate trunk facility and trunk financing needs of the City. This proposal assumes that the study area will include sufficient land to absorb 150 housing units per year over 20 years. This is a rate similar to current development trends. Additionally, it is assumed that the study area will include sufficient land to absorb commercial development at a rate similar to what is currently observed. Potential additional services include extending the analysis time frame beyond 20 years, or looking at special problem areas or districts outside the study area (as directed by City Staff. Potential additional services also include looking at more rapid development than that currently evident. Task 3: Determine the trunk costs, developable acres, and corresponding trunk fees for the major . drainage districts within the study area. Subtasks include: · In each of the districts, determine the costs for the facilities described above. These costs will include construction and land and easement acquisition. Factors will be included for contingencies, engineering, administration and fiscal impacts (carrying cost of money). · Determine the area, and future land use, for undeveloped parcels within each of the major drainage districts analyzed. · Develop and compare potential trunk fees for all districts analyzed. Task 4: Determine whether the trunk fee should be applied on a citywide basis or on a Fee District basis. Subtasks include: · Quantify the cost implications of each trunk fee strategy. · In consultation with City Staff, determine whether the results of Task 3 warrant a Fee District approach or a uniform City trunk storm water fee. Task 5: Based on a best estimate of potential development phasing, conduct a cost recovery analysis. Subtasks include: · Determine the most probable annual development phasing within the 20-year study area based on discussions with City Staff and the City's Comprehensive Plan. · Determine the phasing of trunk facilities within this 20-year time frame. · Analyze cost recovery based on the proposed trunk fee schedule and the 20-year City trunk needs. The cost recovery analysis helps ensure that adequate cash flow is available for trunk facility construction. It also details the City's annual costs versus its potential revenue and, thus, serves as the primary exhibit in justifying the trunk storm water fees. City of Prior Lake December 13. 1999 Page 4 Task 6: Submit draft and final reports. Present results to Staff and City Council. Subtasks include: · Prepare the draft report and submit five copies to City Staff for review. · Revise the draft report according to staff comments. . Submit 25 copies of the final report to the City, and present the final report to.the City Council. This proposal assumes that the project will require three meetings with City Staff and one City Council presentation. Schedule and Compensation A proposed schedule and an estimate of our labor hours and costs are provided on separate pages. Review of Prior Lake Standard Contract Language There are some differences between Bonestroo's standard contract language and the City's standard contract language. Our comments on some of the City's clauses follow. It is not unusual for an owner and an engineer to have different perspectives as each has particular interests. In discussions ofthe issues with our clients and their attorneys, we have always been able to work out terms acceptable to both parties, 1. Regarding insurance and indemnification, a few minor changes are necessary so thatour obligations are covered by insurance currently available in the market. The following changes are requested: . In paragraph 21 (Indemnification), please insert the word "negligent" before the words "act or omission" in the third line of the paragraph. Only negligent acts or omissions are insurable under standard professional liability insurance. . In paragraph 22(A) (General Liability Insurance), please insert the clause "to the extent possible." after the words "No. 21" in the seventh line of the paragraph. General Liability insurance does not cover professional liability claims, and thus it cannot cover the indemnification obligation of paragraph 21 to the extent it is aimed at professional liability. . In paragraph 22(C) (Professional Liability Insurance), please insert the word "negligent" before the word "error" in the sixth line of the paragraph. As discussed above, Professional Liability Insurance only covers actS and omissions that are negligent. 2. The proposed contract also states that the City owns the documents prepared by the Consultant. To allow Bonestroo to reuse standard details and other parts that are vital to its business, Bonestroo typically retains ownership of its documents but gives its clients the right to use the documents for the project. Nevertheless, Bonestroo is willing to grant the City o~nership ifBonestroo can retain the rights it needs to continue its business. Further, if the City owns the documents and plans on reusing them without Bonestroo's involvement, Bonestroo should not be responsible if someone else misinterprets or misuses the documents. Accordingly, we ask that paragraph 24 be reworded as follows: All plans, diagrams, analysis, reports and information generated in connection with performance of the Agreement ("Design Documents") shall become the property of the City, but the Consultant retains an unrestricted right to use the Design Documents in the course of its business and retains its rights in its standard drawing details and specifications, and in all field data, notes, databases, computer files, software, proprietary property and intellectual property developed or modified in the performance of its services. The City may use the Design Documents for +--,.---~,.~_..----.__..............~'- . . ..~-'-~~._-~~~~~-~-".~.~~"'~.~_.._--_.'~"-"'......_--,------.....-..-..---------.. City of Prior Lake December 13, 1999 Page 5 purposes related to the project which is the subject of this Agreement. If the City changes or reusesthe Design Documents without Consultant's involvement or review, the City waives claims against the Consultant resulting from any such changes or reuse and, to the fullest extent permitted by law, the City will defend and indemnify the Consultant from any such claims, liability or costs (including reasonable 'attorney's fees and defense costs) arising or allegedly arising from such changes or reuse. Any questions you have regarding this submittal would be welcomed. I can be reached at (651) 604-4740. I look forward to working with you on this important project. Sincerely, BO~, ROSENE, ANDERLIK RO~~ Project Engineer -t-'<_'_~____^... ~ :E u.r ~ q: -.I 0:: o ...... 0:: a. I.L,;. o >- I- ...... o 'iU en <') 0 <') .... N N r-- 0 r-- .- :::J co ..., ~ 0 ~ CD N CD C!- CD 0 0 N ..... U) ..... CO) CD CO) ai ci .... J: ... ;; N ~ ~ '" 0 0> ON 't:l .'" .S ~ '" ~r-- ., S co co <) '<tN 0 CL. ~~ CL. I/) ~ (; l5 O~ Cii CO ~ It)N '2 ~ 'u co " It) ., ~ ., ... 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