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HomeMy WebLinkAbout6.b. Trunk Sanitary Sewer and Water Assessments Policy Update ROSEMOUNTEXECUTIVE SUMMARY UTILITY COMMISSION Utility Commission Meeting: November 18, 2013 AGENDA ITEM: Trunk Sanitary Sewer and Water AGENDA SECTION: Assessments Policy Update New Business PREPARED BY: Andrew J. Brotzler, PE, Director of Public AGENDA NO. Works / City Engineer t,p•�i ATTACHMENTS: Revised Policy APPROVED BY: RECOMMENDED ACTION: Review the Proposed Changes and Recommend City Council Approval of the Revised Trunk Sanitary Sewer and Water Assessments Policy ISSUE Staff is recommending a modification to the Trunk Sanitary Sewer and Water Assessments Policy. BACKGROUND The attached memo from the November 5, 2013 City Council Work Session provides details about the need to revise the Policy. The proposed changes are indicated on the attached Policy. SUMMARY Staff is requesting Utility Commission review of the proposed changes, as well as a recommendation for City Council approval of the Revised Trunk Sanitary Sewer and Water Assessments Policy. G:\UTILITY COMMISSION\UC Information\20131118 UC Trunk Sanitary Sewer and Water Assessments Policy Update.docx ROSEMOUNTEXECUTIVE SUMMARY CITY COUNCIL City Council Work Session Date: November 5, 2013 AGENDA ITEM: Trunk Sanitary Sewer and Water AGENDA SECTION: Assessment Policy Discussion PREPARED BY: Kim Lindquist, Community Development AGENDA NO. Director �;.D. ATTACHMENTS: Trunk Sanitary Sewer and Water Policy APPROVED BY: DA) RECOMMENDED ACTION: Provide Staff Direction. ISSUE Recently, staff was approached by a property owner who was interested in obtaining a building permit for a separate lot. After further review it was determined that the City never approved the division and therefore a subdivision would need to be processed to allow another dwelling unit. The parcels together equal 21.67 acres. The current policy is that properties within the MUSA for new construction should pay the entire trunk area charges. On a site this size that would be costly. Based upon the City Attorney's advice, staff is recommending a modification to the policy for exceptions under certain conditions. The item tonight is to discuss the policy modification. Should the Council approve the change the property owner will commence the parcel division process. DISCUSSION The policy indicates that trunk sewer and water assessments will be collected as part of a building permit or subdivision where there was no previous development. Further, the policy indicates that the trunk assessments apply to the entire parcel acreage. The issue is more complex because water is available to the site but sewer is not. This property is one of many west of Bacardi that would be served by the new sewer main proposed in Bacardi. The reason is that if the City does not acquire the trunk fees upon development,it is difficult to obtain the fees later when they are made available, since the property is already developed. Because the policy is not clear about fees, both in terms of when they would be paid and how much, staff is recommending new language be added to the policy. The language notes that property located within the MUSA, but not fully served by utilities, the City may collect trunk fees associated with the number of lots created,including the parent parcel. The Council's decision would be based upon the total number of lots created, the amount of land left to develop and the proposed timing for utility extension. RECOMMENDATION Staff is requesting the Council review the recommended language change to the policy which allows some flexibility in the application of trunk fees when properties that do not have City utilities are developed. Consistent with the advice from the City Attorney,modification of the policy with specific criteria provides more equal treatment of like situations should they arise in the future. Should the Council feel comfortable with the policy change staff will schedule the item for Council approval on November 19. CITY OF ROSEMOUNT POLICY TITLE: TRUNK SANITARY SEWER AND WATER ASSESSMENTS POLICY NUMBER: P4 PROPOSED BY: ENGINEERING/PUBLIC WORKS DATE APPROVED I BY COUNCIL: AUm114-9-400.2 02 November 19,2013 PURPOSE The purpose of this policy is to ensure that trunk assessments for sanitary sewer and water supply are charged in a fair and equitable manner. Due to the complexity and the size of most systems, fees known as Trunk Sanitary Sewer and Trunk Water, are collected when sewer and water systems are extended to properties within the City. These fees are used to fund the overall trunk facilities of the City that we required to operate and expand the systems as a whole. A policy needs to be set forth addressing the appropriation of said fees in a suitable, equitable manner to the requesting party. STATEMENT A. For all new construction on sites where there was no previous development, a Trunk Sanitary Sewer and Trunk Water Assessment will be collected as a part of the building permit or subdivision agreement. Trunk assessments apply to the entire parcel acreage (excluding dedicated parks) where construction is proposed. Assessments are calculated on a per acre basis at an amount set forth as determined by the City Council. Fees are justified by rate studies every five to ten years or as determined necessary by the Utility Commission. B. In proposed construction areas where existing private systems (wells and septic fields) currently exist and when city services are extended into or through an area where land owners are serviced by private systems City staff will document the current developed parcel area, for which Trunk Sanitary Sewer and Trunk Water Assessments will not be collected. At such time in the future that building permits are requested for expansion of existing facilities on said parcels, City staff will calculate the area of the facility expansion. Trunk Sanitary Sewer and Trunk Water Assessments will be calculated and collected on a per acre basis at an amount set forth as determined by the City Council for the expansion area. C. On properties located within the MUSA and are subdivided prior to utility extension,the City Council may collect the fees associated with the number of lots created only and including the current lot (parent parcel), with the intent to obtain additional fees when utilities are extended and additional lots created. The City Council's determination can be based upon the number of lots being created, the amount of land left to develop, the proposed timing for utility extension to the site, and the overall size of the parent parcel.