HomeMy WebLinkAbout11 14 2016 Storm Water Discussion
Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com
4646 Dakota Street SE
Prior Lake, MN 55372
CITY COUNCIL WORK SESSION REPORT
MEETING DATE: NOVEMBER 14, 2016
AGENDA #: B
PREPARED BY: FRANK BOYLES, CITY MANAGER
PRESENTED BY: FRANK BOYLES, CITY MANAGER
AGENDA ITEM: STORM WATER FEE DISCUSSION
INTRODUCTION: The purpose of this agenda item is to receive city council approval to
direct this matter to the city council’s Special Assessment Work Group to
provide recommendations to the city council for the December 12, 2016
city council meeting on policy issues related hereto.
History
In response to increasing requirements to address surface water issues,
the city council adopted Section 703 of the Prior Lake City Code,
Stormwater Management Fee in approximatively 1993 which has applied
fees to residential and commercial/industrial properties to finance storm
water improvements to protect property and preserve water quality.
Since its original adoption in 1993, the ordinance has been amended
from time to time but the fee has been charged on an ongoing basis
together with the bimonthly sewer and water bill.
Current Circumstances
In the last 120 days, we have received inquiries from an individual
representing Shepherd of the Lake Church and the six parcels which are
part of that planned unit development. The inquiry was, that compared
with the other fees on the sewer and water bill, the storm water fee
seemed to be out of proportion to the rest when compared for a two-
month period.
We reviewed the ordinance and the first thing that became apparent was
that the fee does not apply to vacant parcels whether residential or
commercial/industrial. But four of the six parcels for which Shepherd’s
receives bills for have no structures. Nonetheless most of the vacant
parcels included a stormwater fee. The obvious conclusion was that
Shepherd’s was being overbilled.
Because of the overbillings for Shepherds of the Lake parcels, staff
began looking at other examples of commercial, industrial and residential
property to see if there were similar problems. What we learned was that
most stormwater accounts are classified as residential—in excess of
8200 of them. After a review of these parcels there are no problems with
the administration of these accounts.
2
Commercial/industrial properties which comprise just over 300 accounts
are a different matter. We did find some questions about the way the fee
was calculated and applied in some cases. It appears that there were
some over and underpayments over time which raise a series of policy
questions which the staff would appreciate city council direction on.
Some of the questions for discussion include:
1. Minimum acceptable variation in acreage database.
2. Period for which payment or credit will be sought.
3. Length of time allowed for repayment to city.
4. Period for payment to account holder.
5. Preferred method of contact with account holder.
6. Timing for adjustments to billings.
7. Future standard operating procedures.
Conclusion
The city does not have a work group constituted for this specific purpose.
However, the Special Assessment Work Group has experience with fee
related issues and so the staff suggests that this matter be referred to
them. The special assessment work group is Councilor Morton and
Keeney.
Our hope is that the work group can finalize recommendations for
addressing this matter. The item would then be placed upon the
December 12, 2016 city council agenda for consideration and action.