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HomeMy WebLinkAbout2.b. Lebanon Hills/VRWMO MemoAGENDA ITEM: Lebanon Hills/VRWMO Memo ENDA PREPARED BY: Andrew J. Brotzler, PE, City Engineer AGENDA NO. 2.6. ATTACHMENTS: Draft Letter APPROVED BY: RECOMMENDED ACTION: Discussion �C ROSEMOUNT BACKGROUND CITY COUNCIL City Council Work Session: January 10, 2007 EXECUTIVE SUMMARY At the December 13 City Council Work Session, staff provided a verbal update on the joint elected officials meeting on November 29 for Lebanon Hills Regional Park that Mayor Droste and Council Member Shoe Corrigan attended Since that tune, staff and the City attorney have worked to develop a draft letter to the Vermilhon River Watershed Joint Powers Organization for Council review. The attached draft letter outlines the City's request for the VRWJPO to consider modifications to the watersheds tax system for the City to address the fact that the City does not contribute water to the Vermillion River Watershed. The draft letter also outlines that a resolution to this matter will need to be addressed pnor to the City further considering any financial participation in the Lebanon Hills Regional Park Stormwater project. Based on discussions with Vermillion River Watershed staff, the VRWJPO board is scheduled to discuss this matter at their January 25 board meeting. In addition, there is a second Joint elected officials meeting for the same date following the VRWJPO board meeting. Staff will be available to respond to questions that Council may have on this matter. G. \Vernulon River Watershed \Lebanonalls- VRWMOCWS1 -10-07 doe 4 ROSEMOUNT January 10, 2007 Commissioner Joe Hams, Chair Vermillion River Watershed Joint Powers Organization 14955 Galaxie Avenue Apple Valley, MN 55124 ADMINISTRATION DRAFT Re: Vermillion River Watershed Boundary and Taxation Dear Commissioner Harris: I am writing you on behalf of the Rosemount City Council with regard to taxation by the Vermillion River Watershed Management Organization (WMO) as it relates to the City of Rosemount. As you are aware, the majonty of the City of Rosemount does not and will not in the future discharge to the Vermilion River. In fact, the City's Comprehensive Stormwater Management Plan identifies a project that will redirect overflow to the Mississippi River. The City has reviewed the WMO's 2007 budget and the levy impact on the City of Rosemount. It has been determined that of the $1,088,520 levied by the watershed within Dakota County, $146,969 was derived from properties within the City of Rosemount (approximately 13.5 The Rosemount City Council realizes that there are benefits that the \VMMO can provide to the City and programs that the \X'M10 can deliver m a cost effective manner. In reviewing the WMO's line item budget and adm rnstranve costs, the City estimates that value at 10% of the levy amount derived from the City. The City of Rosemount has requested on several occasions that the WMO evaluate and address the unfairness of the taxation by the WMO within the City of Rosemount. To -date, the City has not received a formal response from the WMO on this request. The unfairness could be addressed m several ways. These include 1) levying watershed taxes against two or more subwatersheds (one of which would be the City of Rosemount) at different rates rates that reflect the contribution of stormwater and of pollutants from those subwatersheds and the benefit of WMO projects m those subwatersheds; 2) remit a fair portion of the taxes received from the City of Rosemount back to the City for City stormwater projects; and 3) usmg taxes received from the levy m Rosemount to fund specific projects such as the planned project to divert stormwater overflow from the Vermillion River watershed directly to the Mississippi River. Over the past three years, the City of Rosemount, along with staff from the watershed, Dakota County, and Clues of Apple Valley and Eagan have worked towards a solution for the flooding that has occurred within Lebanon Hills Regional Park and the City of Eagan, to which a portion of northern Rosemount is tributary. Up until the past year, the work completed had been limited to the development of a technical plan; and it has only been within the past year that the proposed funding for the overall project has been discussed. 1 G \Vermillion River Watershed \TaxaaonLetteri -10 -07 doc SPIRIT OF PRIDE AND PROGRESS Rosemount City Hall 2875 145th Street West Rosemount, MN 55068 -4997 651- 423 -4411 TDD /TTY 651- 423 -6219 Fax 651- 423 -4424 www.c, rosemount.mn.us Re: Vermillion River Watershed Boundary and Taxation From discussions regarding the proposed funding for the Lebanon Hills Regional Park stormwater project and specifically discussions amongst elected officials on November 29, 2006, it seems that there is an expectation that the City of Rosemount should contribute to Lebanon Hills Regional Park stormwater project. Rosemount faces sigmficant challenges m raising funds needed to address its own stormwater management problems, including the project that will redirect overflow stormwater directly to the Mississippi River. At the same time, the City is being taxed by the WMO for the Vermillion River Watershed to the south to fund stormwater management for an area to which it will send no storm water, and it is being expected to participate financially m stormwater management in the Gun Club Watershed to the north to address flooding problems outside of the City that were not caused by the City. For a number of reasons, and most importantly due to the unresolved matter of the WMO's taxanon within the City of Rosemount, u is very difficult for the Rosemount City Council to consider financially participating m the Lebanon Hills Regional Park stormwater project. The Rosemount City Council acknowledges the importance of addressing this regional issue within the Lebanon Hills Regional Park and the City of Eagan, and, in an effort to expedite a collaborative solution to the issue, is again requesting that the WMO address the future role of the WMO withm the City of Rosemount. It is apparent that additional review and collaboration by the WMO and City will need to occur to work towards a solution to this matter. The City fully expects that a resolution to this matter between the WMO and City will allow the City to consider financially participating m the Lebanon Hills Regional Park stormwater project. Again, on behalf of the Rosemount City Council, we look forward to working with you and the Vermillion River Watershed Joint Powers Organization on this matter. Sincerely, William H Droste Rosemount Mayor Cc: Council Member Baxter Council Member DeBetugnies Council Member Shoe Corrigan Council Member Sterner City Administrator Verbrugge City Engineer Brotzler 2 D AFT rT