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HomeMy WebLinkAboutCity Council Minutes 08-09-2004 SpecialAdopted Minutes Special Council Meeting August 9, 2004 Mayor Johnson called a Special Meeting of the Plymouth City Council to order at 7:00 p.m. in the Council Chambers, 3400 Plymouth Boulevard, on August 9, 2004. COUNCIL PRESENT: Mayor Johnson, Councilmembers Black, Slavik, Hewitt, Neset, and Stein. ABSENT: Councilmember Bildsoe. STAFF PRESENT: City Manager Ahrens, Finance Director Hahn, Financial Analyst Kohn, Community Development Hurlburt, Public Works Director Faulkner, and City Clerk Paulson. Mayor Johnson explained the Surface Water Task Force was established on February 10, 2004 to discuss the City's entire drainage network, not just federally required ponds. She stated this evening, the task force would be presenting their report to the Council. She thanked the task force members for serving on the committee. Presentation of Surface Water Task Force Report Larry Marofsky, task force member, stated the mission of the task force included studying water quality mandates, pond cleaning, flooding and drainage issues, recommending appropriate City role, and creating and recommending funding options. He stated they received an overview of water quality mandates, pond cleaning and maintenance, and flooding and drainage problems. He stated the majority of the task force discussion focused on the City's responsibilities for maintaining the water quality and flood prevention ponds (man-made) and wetlands (natural) which are part of the City's drainage system whether or not these ponds are subject to maintenance agreements with homeowners associations or other landowners. The task force agreed that the City should take responsibility for maintaining all ponds and wetlands that are part of the City's drainage system. An inventory and inspection of the drainage system would be used to determine when maintenance would be needed. He stated the task force discussed various funding options to finance this maintenance that included utilizing the surface water fee, property taxes, or some other method. Community Development Director Hurlburt discussed the following recommendations made by the task force: 1. Continue water quality planning efforts in cooperation with the City's four watersheds and state and federal agencies. Set specific goals and priorities and monitor their achievement. Adopted Council Minutes Special Meeting of August 9, 2004 Page 2 of 6 2. Continue to educate and provide technical assistance to the public about water quality and drainage issues, and about what they as homeowners and property owners can do in their own yards to take personal responsibility. Evaluate the effectiveness of education programs. 3. Consider changing any development and maintenance standards and regulations that conflict with water quality goals, such as limitations on alternatives to lawns or requirements that increase impervious surfaces. 4. Ensure that the drainage system and ponds are designed with adequate capacity so as to prevent flooding and increase the need for maintenance in the future. 5. The preventive maintenance program must include regular inspection of the drainage system and ponds, to identify problems and set priorities for both water quality and flood control. 6. Investigate ways to make pond cleaning more economical and efficient, such as using volunteers, new technology and/or finding economic uses for resulting fill materials. 7. Publicize to residents and fee payers what the surface water fee and any proposed increases will be used for and account for spending from the funding in City newsletters and annual reports. 8. Funding shall be adequate to cover the City's operating and maintenance responsibilities for surface water infrastructure. 9. The budget must reflect the City's priorities as well as provide for response to emergencies. 10. Any funds collected for surface water management shall be dedicated to that purpose. 11. The City should take responsibility for maintaining the water quality and flood prevention functions of all ponds (man-made) and wetlands (natural) that are part of the City's drainage system. 12. The City should inventory and inspect all of the various components of the drainage system, to determine when a pond or other facility is not meeting standards or needs maintenance. 13. As needed to assume responsibility for the water quality and flood prevention functions of ponds and wetlands, the City will negotiate easements and/or changes to pond maintenance agreements on a case-by-case basis. 14. The surface water fee should be a fee, not a tax, so it applies to all property in the City. 15. Increase the surface water fee gradually over five years to reach the level needed to cover long-term needs for water quality mandates, pond cleaning, flooding and drainage issues. 16. Continue to charge higher surface water fees for properties that have higher water quality impacts and look for other opportunities to use fees to provide incentives or disincentives as appropriate. 17. Investigate and apply for any available grants or aid to supplement local funding sources. She discussed various surface water utility fee assumptions and scenarios for ponds with and without maintenance agreements. She stated with the current revenue shortfall and adding in new costs for maintenance for all ponds, with and without maintenance agreements, there would be a shortfall of $621,032. She discussed a three percent inflationary figure which would increase the surface water utility fee to $5.09 per month in 2009 from the current figure of $3.25 per month. This would be a 53.85% increase from 2004-2009. She stressed that the surface water utility fee doesn't include new initiatives or projects, new mandates, new assessments from watersheds, transfers of existing expenditures to other funding sources, or future storm water Adopted Council Minutes Special Meeting of August 9, 2004 Page 3 of 6 holding ponds at the City's total build -out. She explained at build -out, the City could have an additional 100 -storm water holding ponds, eventually increasing the annual maintenance cost by an additional $100,000 per year beyond the current estimates. In order to realize a $100,000 per year increase in revenues from the surface water utility fee, the fee for a single-family home would need to increase by approximately $0.21 per month, or $2.52 per year, based on the current rate structure. She stated the City should review assumptions and priorities each year. Councilmember Hewitt asked about the City's assumption for a disposal site. Public Works Director Faulkner stated the disposal site is located on the west side of I-494, on the south side of Schmidt Lake Road. He stated if the City were to clean 10 ponds per year, this site could handle the material up to 10 years. Councilmember Slavik stated one of the task force's recommendations is for the City to negotiate easements and/or changes to pond maintenance agreements on a case-by-case basis. She stated this would involve costs with the City Attorney drafting agreements, and she asked if these costs have been figured in. Public Works Director Faulkner replied staff doesn't anticipate a large cost and is hoping that property owners would donate the easements. Councilmember Slavik asked if a neighborhood desired to have their pond cleaned, and it wasn't scheduled to be cleaned as soon as they would like, what would occur then (similar to street reconstruction projects). Community Development Director Hurlburt stated the City would conduct inventory and prioritization of the ponds so residents who desired a pond cleaned for aesthetic reasons couldn't be moved up on the list. Councilmember Slavik asked if 50 ponds needed to be cleaned within the next year or two, how would those ponds be prioritized. Public Works Director Faulkner replied there are a lot of unknowns until the City completes the inventory; however, he wouldn't expect that to be the case. Councilmember Slavik stated if the City takes over pond maintenance, there would need to be standards for the prioritization of ponds, as the City could only do so many per year. Councilmember Hewitt asked if the City would be liable if residents use the ponds for ice skating and they injure themselves. Community Development Director Hurlburt replied that the City wouldn't own the ponds but only have easements from the property owners to access the ponds for cleaning. Councilmember Stein asked if the increase in the surface water utility fee only covers the pond maintenance. Community Development Director Hurlburt replied yes. Councilmember Stein asked if staff has reviewed collecting a fee from developers to establish a pond reserve fund, similar to the park dedication fund. Community Development Director Hurlburt replied for the park system, that covers maintenance, not construction, for development Adopted Council Minutes Special Meeting of August 9, 2004 Page 4 of 6 of infrastructure. She stated that the City couldn't collect a fee up front for perpetual maintenance. Councilmember Stein asked why the City's surface water utility fee is a little less than average in comparison to other cities. Financial Analyst Kohn replied many cities haven't addressed the issue of pond maintenance. Councilmember Stein asked if there could be a way to tie the surface water utility fee to the amount of impervious surface. Community Development Director Hurlburt replied the current fee is already based on the amount of impervious surface. The Council thanked the task force for all their hard work. Motion was made by Councilmember Slavik, and seconded by Mayor Johnson to accept the task force's report and the Council schedules a Study Session to consider raising the surface water utility fee and implementing a fee increase prior to 2005. City Manager Ahrens commented that staff is in the process of developing the 2005 budget. She stated whether or not staff incorporated some of the task force's recommendations with the initial budget, this would be one issue that would be discussed at the Council's budget Study Session on August 23. She stated staff would need a two-month lead to program any rate increase into the system. Mayor Johnson asked if the Council approved an increase in the surface water utility fee, could it be part of the budget process or would there be a required separate hearing. Finance Director Hahn replied there would be an ordinance amendment, and it would be included in the budget process. Councilmember Black stated she is concerned about the residents who had flooding problems last year, and this could delay those projects until next spring. She asked if the Council could take action sooner for these projects and what kind of timeframe would be necessary. Public Works Director Faulkner replied there are some available funds to expedite some of those projects. He noted that one of the projects was included as an alternate in the mill and overlay project for Sunset Trail Drive. However, some of the other drainage projects require specific plans and would need to be undertaken in the spring. Councilmember Black stated that she would like to proceed with the inflationary part of the proposal as that could be undertaken fairly easily. She stated the pond maintenance recommendation, which is more long-term, could take a longer time to review. Councilmember Slavik stated that she would've preferred to approve the inflationary increase in the surface water utility fee earlier this year. Adopted Council Minutes Special Meeting of August 9, 2004 Page 5 of 6 Mayor Johnson stated that if the Council desired to study the task force's report further, she could support that. However, she wouldn't want to delay decisions after September. She indicated that she supports the inflationary increase as she feels that is a base minimum. Motion was made by Councilmember Black, and seconded by Councilmember Neset, to amend the main motion accept the Surface Water Task Force's report and have staff present their recommendation for what the surface water utility fee increase should be for the Council's budget Study Session on August 23. Councilmember Stein asked if the Council would be considering raising the 2003 storm water utility fee rate to the rate for 2005 without an increase for 2004. Councilmember Black stated that is correct. Financial Analyst Kohn added the fee would be discussed during the budget process. Councilmember Slavik asked how long it would take for staff to do the inventory of the City's drainage systems. Public Works Director Faulkner stated he is optimistic that it could be completed over the next two summers (2005 and 2006) utilizing summer interns. Councilmember Slavik stated she would be comfortable in raising the surface water utility fee, but she would like to review the drainage system inventory before she would support the City assuming pond maintenance. Mayor Johnson stated that she agrees, but without proceeding with an increase in the surface water utility fee, it would be a "chicken and egg" scenario. She stated it concerns her that all ponds eventually drain into the lakes, and residents are unable to address the pond cleaning on their own. Therefore, she feels compelled that the City might have to assume pond maintenance. Councilmember Slavik stated she discussed with the City Attorney the possibility of establishing special taxing districts, similar to assessments, whereby the City could recoup part of the costs for the cleanup. She noted that there could be a lot of pollution and contamination in the ponds which could increase the costs of cleanup. Mayor Johnson stated one of the problems in establishing special taxing districts is who would be included in those districts since drainage systems encompass large areas. Mr. Marofsky stated that concern is why the task force is recommending that the City discuss the homeowners association agreements individually. If a homeowners association desired to maintain their own pond, perhaps there could be some type of incentive or rebate from the City. Robert Schafer, member of the task force, stated if the City were to assume pond maintenance, according to the agreements, the City wouldn't be able to recoup their expense. Adopted Council Minutes Special Meeting of August 9, 2004 Page 6 of 6 There being no further discussion, the Council voted on the amendment. With all members voting in favor, the motion carried. The Council voted on the amended main motion and all members voting in favor, the motion carried. Mayor Johnson encouraged residents to attend the Council's budget Study Session on August 23 at 7:00 p.m. in the lunchroom. Adiournment Mayor Johnson declared the meeting adjourned t 8:37 p.m. Sandra R. Paulson, City Clerk