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ITEM 4.2 Storm water CIM0 0all., V MINNESOTA V DEPARTMENT INFORMATION Request for City Council Action AGENDA ITEM DETAILS RECOMMENDATION: City staff recommends the City Council adopt an ordinance amending the Storm Sewer Improvement District to include all areas of the City and amend the fee schedule to establish that the storm water utility fee be charged only to final plats approved after 15 November 1990. ARE YOU SEEKING APPROVAL OF A CONTRACT? I IS A PUBLIC HEARING REQUIRED? No. BACKGROUND/JUSTIFICATION: Yes. The City established a storm water utility district to fund the inspection and maintenance of the City's storm water utilities and treatment basins that are subject to MS4 storm water management requirements. The recent increase in development includes final plats not in the initial storm water utility district, necessitating an amendment of the district boundaries. Amendment of the district boundaries requires a public hearing, which the City Council will hold on 13 October 2014 at 7:0013M. The Ordinance amending the Storm Sewer Improvement District establishes the entire area of the City as being included. This change will avoid the need to amend the District boundaries when new subdivisions are platted that are subject to MS4 requirements. The fee schedule is also amended by the proposed ordinance to specify that only final plats approved after 15 November 1990 are subject to the storm water utility fee consistent with the City's current implementation of the charges. SUPPORTING DOCUMENTS: ❑ ATTACHED ❑ NONE A. Ordinance 2014-13 POSSIBLE MOTION Please word motion as you would like it to appear in the minutes. Motion to adopt Ordinance 2014-13 establishing a Storm Sewer Improvement District pursuant to Minnesota Statutes 444.075. REQUESTOR: City Planner Licht ORIGINATING DEPARTMENT: Utilities MEETING DATE: 13 October 2014 PRESENTER(s): City Planner Licht REVIEWED BY: City Administrator Johnson ITEM #: 4.2 —Storm water CIM AGENDA ITEM DETAILS RECOMMENDATION: City staff recommends the City Council adopt an ordinance amending the Storm Sewer Improvement District to include all areas of the City and amend the fee schedule to establish that the storm water utility fee be charged only to final plats approved after 15 November 1990. ARE YOU SEEKING APPROVAL OF A CONTRACT? I IS A PUBLIC HEARING REQUIRED? No. BACKGROUND/JUSTIFICATION: Yes. The City established a storm water utility district to fund the inspection and maintenance of the City's storm water utilities and treatment basins that are subject to MS4 storm water management requirements. The recent increase in development includes final plats not in the initial storm water utility district, necessitating an amendment of the district boundaries. Amendment of the district boundaries requires a public hearing, which the City Council will hold on 13 October 2014 at 7:0013M. The Ordinance amending the Storm Sewer Improvement District establishes the entire area of the City as being included. This change will avoid the need to amend the District boundaries when new subdivisions are platted that are subject to MS4 requirements. The fee schedule is also amended by the proposed ordinance to specify that only final plats approved after 15 November 1990 are subject to the storm water utility fee consistent with the City's current implementation of the charges. SUPPORTING DOCUMENTS: ❑ ATTACHED ❑ NONE A. Ordinance 2014-13 POSSIBLE MOTION Please word motion as you would like it to appear in the minutes. Motion to adopt Ordinance 2014-13 establishing a Storm Sewer Improvement District pursuant to Minnesota Statutes 444.075. BUDGET INFORMATION FUNDING: BUDGETED: ❑ YES NA o NO ACTION TAKEN ❑ APPROVED AS REQUESTED o DENIED o TABLED ❑ OTHER (List changes) COMMENTS: ORDINANCE NO.: 2014-13 CITY OF OTSEGO COUNTY OF WRIGHT, MINNESOTA AN ORDINANCE AMENDING THE CITY CODE RELATED TO STORMWATER UTILITY FEES. THE CITY COUNCIL OF THE CITY OF OTSEGO DOES HEREBY ORDAIN: Section 1. Section 2-4-2.J.5 of the City Code (Fee Schedule) is hereby amended to read as follows: 5. Annual Storm Water District Utility Fee for lots final platted after November 15,1990: a. Agricultural Districts: 1. A-2 District: $29.00/parcel b. Residential Districts: 1. R -C, R-1, R-2, R-3 Districts: $29.00/lot 2. R -4A, R-4 Districts: $15.00/lot 3. R-5 Districts: $12.00/unit 4. R -MH District: $8.00/unit 5. R-6 District: $6.25/unit 6. R-7 District: $2.85unit C. Business Districts: $64.00/gross acre d. Industrial Districts: $64.00/gross acre 1 Section 2. Section 6-1-9 of the City Code (Storm Water Fees) is hereby amended to read as follows: 6-1-9: STORM WATERIF€€SUTILITIES: A. Storm Sewer Improvement District. There is hereby established a Storm Sewer Improvement District incorporating all properties within the territorial limits of the City of Otsego as of [EFFECTIVE DATE] for the purpose of building, constructing, reconstructing, repair, enlargement, improvement, or in any other manner obtain storm water management facilities, and maintain and operate the storm water management facilities and including financing and collection of charges for said actions related to storm water management facilities in accordance with Minnesota Statute 444.075. B. Storm Water Utility Fee, 1. There is hereby established a fee for City Storm Water services. Said fee is authorized by Minnesota Statute 444 and is to be to be uniformly applied across the City and is based upon the estimated amount of impervious surfaces for certain lots as well as the expected discharge of storm water from a particular parcel based upon its use. The purpose of the fee is to pay for costs incurred by the City for implementation of statutorily required storm water programs, for required capital improvements to the overall system, required inspection of the system and replacement and repair of the system. The City finds that these programs, repairs, maintenance and improvements benefit all properties in the City but that such benefit is not equally realized by all properties, nor do properties contribute to overall storm water flow equally. 2. In order to provide for as equitable a system as possible, the City fee is hereby established based upon a variation of the Rational Method as outlined in the Fee Study prepared for the City by Hakanson Anderson and Associates dated December 8, 2008. The Rational Method adopted is a variation of a formula taking into account the averaged runoff coefficient of certain classes of properties, the average area of parcels within each class and the intensity of use of that parcel as set forth in the report listed above. The study identifies three general classes of properties based upon use by zoning designation, residential uses, commercial and industrial uses, and agricultural uses. 3. Based upon the formula, the entire City was evaluated to determine the number of parcels in each designated zoning district. The composite C 2 values (runoff coefficient) were adjusted by the average area of parcels within each respective district in order to determine proper allocation of costs between different kinds of lots. The final allocation of costs represents the area adjusted C value for a particular parcel as a percentage of the overall sum of area adjusted C values for the entire City. 4. Operation of the formula above results in a fee per parcel to be charged to existing parcels within the City as their fair share of the costs incurred by the City. The basic formula will be recalculated yearly and included in the City fee ordinance in order to account for ongoing changes in lot size and use and changes in zoning designation. The formula may be amended from time to time by amendment to this ordinance. 5. The fee is for the purpose of paying for the ongoing review, monitoring, repair, maintenance and improvement of the existing City storm water infrastructure. The City may include in the fee any and all costs incurred relative to storm water drainage within the City no matter how said fees are categorized, or may choose to pay portions of the fee from the general levy or other funding sources. Nothing in this ordinance is to be construed as a limitation on the City's ability to allocate or reallocate the costs herein to this fee or to other funding sources from year to year. Administrative costs for collection of the fee may be added to bills as an additional charge. The fee shall be administered by the City Utility Department and shall be billed or charged to residents on a regular basis as determined by the Utility Billing Department. Section 3. This Ordinance shall become effective immediately upon its passage and publication. MOTION BY: SECOND BY: ALL IN FAVOR: THOSE OPPOSED: ADOPTED by the City Council of the City of Otsego this 13th day of October, 2014. 3 CITY OF OTSEGO la Jessica L. Stockamp, Mayor ATTEST: Tami Loff, City Clerk