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Home My WebLink About10B - WSB Storm Water Fee CITY COUNCIL AGENDA REPORT DATE: AGENDA #: PREPARED BY: MAY 18,1998 10B GREG ILKKA, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER CONSIDER APPROVAL OF: 1) RESOLUTION 98-XX ADOPTING AN INTERIM STORM WATER TRUNK FEE AND REVISING THE ASSESSMENT POLICY AND THE PUBLIC WORKS DESIGN MANUAL TO ELIMINATE POND EXCAVATION AND POND LANDSCAPING AS STORM WATER DRAINAGE IMPROVEMENT COSTS ELIGIBLE FOR REIMBURSEMENT FROM THE TRUNK RESERVE FUND; AND 2) RESOLUTION 98-XX AUTHORIZING WSB & ASSOCIATES, INC. TO PREPARE A STORM WATER TRUNK FEE JUSTIFICATION REPORT. AGENDA ITEM: DISCUSSION: HISTORY Recent events have caused City staff to review the storm water policy and methods for reimbursing developers for the installation of storm water improvements. These reimbursements are applicable to developments in the City which presently pay storm water fees based on an area charge. As part of the subdivision (land development) process the City presently collects 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 are deposited in the City's Trunk Reserve Fund. The theory of this fee is that everyone, those at the top of the hill and those at the bottom, are responsible for paying for storm water conveyance and storage. The costs for storm water facilities for the property are paid from this money. For properties at the bottom of the hill, the cost of storm water facilities often exceed their contribution. While the costs of storm water facilities at the top of the hill will be less than the 162a&<E"8~eek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER T r" .,..-.- contribution that property made. In this way all properties . assume responsiblity for storm water management. Storm water facilities are generally installed by the developer as part of the plat infrastructure. City policy provides for the reimbursement of developer installed storm sewer improvements from the Trunk reserve Fund. The City's Assessment Policy currently allows for the reimbursement of storm sewer and pond excavation as eligible expenses for storm water improvements. The City's Public Works Design Manual currently allows pond landscaping as an an eligible expense for storm water improvements. If a Storm Water Trunk Fee is adopted these documents will be revised to reflect the change. CURRENT CIRCUMSTANCES In an effort to address concerns about the method currently' used to develop storm water improvements in the City, and to provide justification for the fees that are collected, staff has developed a proposal to adopt a Storm Water Trunk Fee. Under a trunk fee policy, the City will collect a trunk acreage fee. We anticipate this fee will be at a lesser rate than the current square footage fee, but will only pay for trunk facilities. Trunk facilities would include City required oversizing of pipes or ponds. In this manner the policy parallels that which is currently applied to the water and sanitary sewer systems. ISSUES As Council is aware, the City is in the process of evaluating the fees the City currently charges for development. As one part of this effort we have requested proposals from WSB & Associates, Inc., and Howard R. Green Company, both consulting engineering firms, to prepare a Storm Water Trunk Fee Justification Report for the City. The proposals were $18,560.00 and $20,000.00 respectively. The impetus for this change was to eliminate reimbursing developers for the entire cost of their storm water improvements. Staff proposes that the City adopt the Storm Water Trunk Fee effective immediately in an interim amount of $3,180 per acre, subject to revision based upon receipt of the Justification Report, and annually thereafter. The $3,180 TRKSTORM.DOC FINANCIAL IMPACT: ALTERNATIVES: TRKSTORM.DOC per acre is similar to Shakopee's Storm Water Trunk Fee, the basis for which was a Justification Report. While we anticipate a Fee Justification Report will determine the appropriate fee to be similar to this amount, it will most certainly be something different. Therefore, it is further recommended that during this interim period all Development Contracts entered into by the City include a provision to provide for a reconciliation of the Storm Water Trunk Fee based upon the final fee adopted upon receipt of the Justification Report. In this way neither the City (if the interim fee is to low) nor the developers (if the interim fee is too high) are harmed by using the interim fee. CONCLUSION The Development Review Committee (DRC) has reviewed this issue and unanimously recommends adoption of the. Storm Water Trunk Fee and these revisions to the Assessment Policy and the Public Works Design Manual. Adoption of a Trunk Storm Water Fee will reduce the revenue into the Trunk Reserve Fund, however, it should be offset by reductions in expenditures from the Trunk Reserve Fund as the City will only be paying for trunk facilities. Upon completion of the Fee Justification Report and adoption of the recommended fee the revenues should cover the expenses incurred over the time it takes to fully develop the system. Funding for the proposed study would be from the Trunk Reserve Fund which had a balance of $1,885,565.23 as of May 1, 1998. The alternatives are as follows: 1. Approve Resolution 98-XX adopting an interim Storm Water Trunk Fee and revising the Assessment Policy and the Public Works Design Manual to eliminate pond excavation and pond landscaping as storm water improvement costs eligible for reimbursement from the Trunk Reserve Fund; and 2) Resolution 98-XX authorizing WSB & Associates, Inc. to prepare a Storm Water Trunk Fee Justification Report. 2. Table this Agenda item for a specific reason. ....---..-. T I RECOMMENDED MOTION: REVIEWED BY: TRKSTORM.DOC 3. Deny this Agenda item for a specific reason. 1) Motion and second to adopt Resolution 98-XX adopting an interim Storm Water Trunk Fee and revising the Assessment Policy and the Public Works Design Manual to eliminate pond excavation and pond landscaping as storm water improvement costs eligible for reimbursement from the Trunk Reserve Fund. 2) Motion and second to adopt Resolution 98-XX authorizing WSB & Associates, Inc. to prepare a Storm Water Trunk Fee Justification Report for a fee not to exceed $18,560.00 to be paid from the Trunk R serve Fund. RESOLUTION 98-XX A RESOLUTION ADOPTING AN INTERIM STORM WATER TRUNK FEE AND REVISING THE ASSESSMENT POLICY AND THE PUBLIC WORKS DESIGN MANUAL TO ELIMINATE POND EXCAVATION AND POND LANDSCAPING AS STORM WATER DRAINAGE IMPROVEMENT COSTS ELIGIBLE FOR REIMBURSEMENT FROM THE TRUNK RESERVE FUND MOTION BY: 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 undertaken to confirm the appropriateness of such fee and WHEREAS, such study is expected to be completed by November 30,1998, and WHEREAS, it is the City Council's desire to have a fair and equitable funding mechanism for these storm water trunk facility improvements. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA, a Storm Water Trunk Fee is hereby adopted at an interim rate of $3,180 per acre to be applied to all developments henceforth and to be adjusted based on the results of a Storm Water Trunk Fee Justification Report, and annually thereafter. BE IT FURTHER RESOLVED, the appropriate revisions to the Assessment Policy and the Public Works Design Manual be made and published to eliminate pond excavation and pond landscaping as storm water drainage improvement costs eligible for reimbursement from the Trunk Reserve Fund. Passed and adopted this 18th day of May, 1998. TRKSTORM.DOC T . YES NO Mader Mader Kedrowski Kedrowski Petersen Petersen Schenck Schenck Wuellner Wuellner {Seal} Frank Boyles City Manager City of Prior Lake TRKSTORM.DOC RESOLUTION 98-XX AUTHORIZING WSB & ASSOCIATES, INC. TO PREPARE A STORM WATER TRUNK FEE JUSTIFICATION REPORT MOTION BY: SECOND BY: 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, WSB & Associates, Inc., is hereby authorized to prepare a Storm Water Fee Justification Report for a fee not to exceed $18,560.00. BE IT FURTHER RESOLVED, funding for this justification report will be from the Trunk Reserve Fund. Passed and adopted this 18th day of May, 1998. YES NO Mader Kedrowski Peterson Schenck Wuellner Mader Kedrowski Peterson Schenck Wuellner {Seal} Frank Boyles City Manager City of Prior Lake TRKSTORM.DOC T r