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