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Home My WebLink About6.h. Storm Water Utility Policy ClarificationsCITY OF ROSEMOUNT EXECUTIVE SUMMARY FOR ACTION CITY COUNCIL MEETING DATE: November 19,1996 AGENDA ITEM: Storm Water Utility Policy Clarifications AGENDA SECTION: Consent PREPARED BY: Tim P. Brown, Water Resources Coordinator a AGENDrw #6 H ATTACHMENTS: Proposed Policy Changes and Summary APPROVED BY: After several years of implementing the Storm Water Utility, comments from residents and problems encountered have led to the formulation of some proposed minor changes to the Storm Water Utility Policy. All of the following proposed changes were discussed and approved by the Utility Commission on October 7 and are in light of our experience with the policy. The only fee increase involves the proposed official designation of a minimum charge for all accounts in the amount of $6.65 per quarter. This would impact aboui �200 accounts or roughly 5% of the total, who would experience an increase in fee to $6.65 per quarter. Another 5% experience a slight 1% or so decrease in fee due to consolidating categories. Finally, about 90% or about 4000 accounts remain unchanged. The attached proposed changes attempt to improve the system in the following ways: ,�CLEARLY BASE FEES ON CURRENT LAND USE References to zoning are eliminated and unique Storm Water Utility Fee land use categories are created. -TRIM THE NUMBER OF LAND USE CATEGORIES Ten zoning categories are reduced to six Storm Water Utility Fee categories. Similar land uses with similar runoff estimates are grouped together. ,ESTABLISH A RATE FOR PLATTED BUT UNDEVELOPED LOTS Platted/undeveloped lots would pay the single residential (R-1) rate of $6.65 per quarter. ,-ESTABLISH A M[INEVIUM FEE FOR ALL PROPERTIES A minimum Storm Water Utility Fee of $6.65 for all parcels is established. o -CLARIFY RATES FOR MULTI -RESIDENTIAL USE Multi -unit residential rates are set at the single family/minimum rate where units have individual water meters and set at the "old" rate of $24.75 per acre otherwise. I RECOMMENDED ACTION: Approve changes to the Storm Water Utility Policy. I COUNCIL ACTION: November 14, 1996 To: Bud 0smundson, Public Works Director From: Tim Brown, Water Resources Coordinator RE: STORM WATER UTILITY FEE POLICY IMPROVEMENTS Implementation of the current storm water utility fee system has proven to be a difficult and complicated task. Up until now, land zoning has been used to indicate the amount of runoff generated by a site. The fee is then based on runoff estimates for a given set of land uses. While this sounds simple there have been many cases where the above approach has been seen as unfair by landowners. Especially troublesome and difficult to justify are situations where the current land use produces much less runoff than the zoning indicates. Two parcels of land owned by the university provide a good example of this problem. The two parcels are located in the western comer of the intersection of County Road 42 and 145th Street, just east of the University Addition. Roughly half of this 3 5 acre site is zoned industrial IG while the other half is zoned Residential R-2. Under our current system, this zoning leads to a storm water utility bill in the amount of $501.64. But all the land is currently cultivated so that same sized parcels generating the same runoff in agricultural zoned areas would pay only $10.10. This contradiction is difficult to justify based on runoff contributed to the storm water collection system. At the other end of the spectrum are properties which do not conform to zoning and generate much more runoff than predicted. A particular 60+ acre plot east of Blaine Avenue is zoned for agriculture but is being used for commercial/industrial purposes, generating much more than typical agricultural runoff amounts. Currently it is billed as agricultural land at $7.60. This does not make sense if runoff generation is the driving force behind the fee. It would make more sense to bill it at the IG rate for the 40 or so acres of commercial activity and the undeveloped rate for the other 20 acres. The total bill would then be $1,322.00. Also problematic have been lots which owe a few dollars or less. By the time labor and postage go into the billing, payment and any needed follow-up, the City ends up losing money on the process. These lots are primarily agricultural or undeveloped lots of less than 30 or so acres. While these lots may or may not contribute runoff they must be included in our infrastructure planning and construction with potential future use in mind. A minimum rate which insures contribution to the storm water utility is needed. We also need to specify rates for lots that are platted but not yet built on. Technically these areas are undeveloped and might qualify for a very low rate. Major expense is incurred though as -I- these lots often require storm sewer and other related utilities. Finally, we feel we can simplify and clarify the Storm Water Utility Policy so that it can be implemented and explained to property owners easily. Currently there are 10 land use based rates. In many cases property has multiple zoning and/or land uses making implementation and explanation difficult. Further, several categories have nearly the same billing rate and runoff estimate making them redundant. Reducing the number of categories and firmly rooting the billing in current land use rather than zoning might greatly improve understanding and acceptance of the storm water utility fee. In summary, we would like to improve the Storm Water Utility Fee Policy in the following ways: ,-Clarify the policy and fim-dy root fees in current land use *Simplify and trim the number of land use categories ,-Establish a rate for platted but undeveloped lots ,-Establish an minimum fee for all properties -Clarify rates for multi -residential use The following modifications to Section 3.2.1.3 of the City Qf Rosemount Storm Water UtiliV Pol as approved by the Utility Commission on 3/9/92 and adopted by the City Council on 3/17/92, attempt to serve the above improvements. In the modified Section below, . icates proposed gM ind new and strikeo indicates proposed deleted. -2- TABLE B. RUNOFF ESTMATES FOR 2.1 INCH RAINFALL OVER I HOUR Land Use Description Runoff (inches) Ratio to residential RL, R- 1, R-2 Single -Family Residential 0.97 1.00 RR Rural Residential 0.83 0.86 AG Agricultural 0.53 0.55 PK Parks, Golf Courses, Cemeteries 0.67 0.69 U Undeveloped 0.53 0.55 R-3, R4 Multi -Family Residential 1.20 1.24 P Churches, Schools, Hospitals, Government Buildings 1.20 1.24 C-1, 2, 3, 4 6 Commercial 1.50 1.55 1P, IG Industrial 1.64 1.69 PL Parking Lots 1 1.64 1.69 1 3.2.1.3 GENERAL SERVICE FEE CALCULATION The merging of the runoff and service components was done through extensive discussion and many modifications were made before arriving at acceptable rates for each land use. As previously stated, the single-family residential lot was used as a base upon which the remaining land use fees were constructed. The fees were calculated by using the runoff ratios found in the Table B above and converting those ratios into the same units (acres). The single-family residential zoning has a density of approximately three (3) kft jjjajjA#" per acre. Therefore, using the single-family residential unit as a base, all acreage runoff ratios were multiplied by three prior to degree of service modifications. For example, the multi -family runoff ratio is 1.2-4., multiplied by 3, and again by $4-.% (the single-family residential base) for a total of $ f 8.23 calculated fee per acre. In cases such as Rural Residential, Agricultural land, Undeveloped land and Park land a separate "Base Rate" was determined taking degree of service considerations into account. A Base Rate of $0. 10 per acre was agreed to for all Undeveloped parcels. The Agrictdtttral zoned propet ty vvf�eh Without buildhMs are not chw�ged Getteral Service Fees. The Rural Residential/Agricultural Land Use General Service Fees were further modified by utilizing the minimum lot size required by the Zoning Ordinance in the calculations as follows: -3- P.t.3-eneral. Service Fee = S.F. Residential Fee + (Base Rate x Minimum Lot Size) *RR: (2.5 Acre Minimum Lot Size) General Service Fee $4-.% + ($0. 10/acre x 2.5 acres) P -AG: (10 Acre Minimum Lot Size) General Service Fee + ($0. 1 O/acre x 10 acres) .............. $"e " Tfte Table shows a listing of the "General Service" component of the Storm Water Utility Fees per quarter per unit. ME -5- . ...... .... .................. 1009 ............ PRO wo .... ......... . . .... .......... .......... ................ .......... . . ................... ... mm . ......... ... .......... .9 ........................................ ... .... .. id . ............ ............ %..--.R.:::::;:�*,:, ..gw: .. R": . . ......... ...... W.M.I. . .. .. .......... .. .... .... . .... . .4 . ... ..... . . .. ...... .......... ....... xv .... .............. ..... i a #A I I f.) Al 04.XX mll i I I i i ta In 6 11 &1 ra ................ . ................... . .... Om IV9:1 . .... .......... ........ .. i a #A I I f.) Al 04.XX mll i I I i i ta In 6 11 &1 ra I�k sll 0T.X% mll I I I I I tm Is Ewa(' ]go