HomeMy WebLinkAboutCity Council Packet 02-13-2001 SpecialAgenda
City of Plymouth
Special City Council Meeting
Tuesday, February 13, 2001
6:00 p.m.
Police Department Training Room
Call to Order.
2. Discuss Surface Water Utility Fee Rate Structure.
Adjourn.
Agenda Number: a
TO: Dwight Johnson, City Manager
FROM: Mike Kohn'F—financial Analyst through Dale Hahn, Finance Director
SUBJECT: Surface Water Utility Review
DATE: February 9, 2001 for the Special City Council Meeting of February 13,
2001
1. ACTION REQUESTED:
Review and give staff direction on proposed Surface Water Utility structure.
2. BACKGROUND:
At the June 6, 2000, Special City Council Meeting a motion was passed that directed staff to
prepare a surface water management fee proposal. In addition, the recently adopted 2001
budget calls for implementation of a surface water management fee, beginning in July, 2001.
Implementation of a surface water management fee requires the establishment of a utility as
authorized by State Statute 444.075. By establishing a Surface Water Utility the City will gain
a stable, dedicated, flexible and fair source of revenue to support ongoing surface water
management programs. In addition, implementation of a fee directly related to surface water
management costs and runoff may provide an incentive to property owners to reduce the
amount of surface water runoff leaving their properties.
Staff has prepared a Surface Water Utility proposal and would appreciate City Council input
regarding the proposed structure. There are three main points that need evaluation and
discussion. They are:
Are the correct properties targeted for inclusion in the surface water utility?
Are these properties organized into the correct categories?
Does the utility impose the correct fee for surface water services?
3. DISCUSSION:
Discussion Point Number One
The proposed Surface Water Utility structure would target the following property types:
Single Family
Multi -Family
Commercial/Industrial
Churches
Schools
Public Lands With Occupied Structures
Institutions
Golf Courses
Total
Acres
8,461.79
927.55
2,473.93
208.48
471.46
207.67
73.59
8.5 (impervious only)
12,832.97
The proposed Surface Water Utility would exclude the following property types:
Under the current proposal 56.18% of land would be covered by the Surface Water Utility.
Public lands without occupied structures were not included because other communities have
found it difficult to collect from county, state and federal authorities when there are no
occupied structures on a parcel of land. In the case of our own property, it would make little
sense to charge ourselves through a utility for something that will have to be placed on the tax
levy to be paid.
Railroad and utility properties are not included because they are also difficult to collect from.
Public rights-of-way were excluded for the same reasons that public lands without occupied
structures were.
Vacant land was excluded for both administrative and philosophical reasons. First of all,
vacant land is not currently included in our utility billing system. Vacant land would be
difficult to set up and track. Secondly, a good case can be made that if all land were vacant
there would be no need for surface water infrastructure or services. It is development that
drives the need for surface water management.
2
Acres
Public Lands Without Occupied Structures 3,190.26
Railroads 104.21
Utility Property 56.87
Public Rights -of -Way 4,664.67
Vacant 1,990.92
Total 10,006.93
Under the current proposal 56.18% of land would be covered by the Surface Water Utility.
Public lands without occupied structures were not included because other communities have
found it difficult to collect from county, state and federal authorities when there are no
occupied structures on a parcel of land. In the case of our own property, it would make little
sense to charge ourselves through a utility for something that will have to be placed on the tax
levy to be paid.
Railroad and utility properties are not included because they are also difficult to collect from.
Public rights-of-way were excluded for the same reasons that public lands without occupied
structures were.
Vacant land was excluded for both administrative and philosophical reasons. First of all,
vacant land is not currently included in our utility billing system. Vacant land would be
difficult to set up and track. Secondly, a good case can be made that if all land were vacant
there would be no need for surface water infrastructure or services. It is development that
drives the need for surface water management.
2
Discussion Point Number Two
In a perfect world each and every property in the targeted land uses would be evaluated
individually to determine the amount of runoff produced. This is, however, not possible.
Consequently, the current proposal targets similar fees toward similar categories of property
for single family, multi -family and commercial/industrial property. For example, all single
family properties would be charged one rate for each unit. All multi -family properties would
be charged another rate for each acre of property. The other groups of property: churches,
schools, public lands with occupied structure, institutional and golf courses were measured
individually because they were limited in number and did vary in makeup. The following
table outlines how this was done.
Category
Single Family
Multi -Family
Commercial/Industrial
Churches
Schools
Public lands — Occupied Structures
Institutional
Golf Courses/Regional Parks
Fee Basis Impervious Runoff REF
Per Unit 16% 29 1
Per Unit/Per Acre 30% 48 3.32
Per Acre 64% 1.04 7.18
Per Acre Per site Per site Per site
Per Acre Per site Per site Per site
Per Acre Per site Per site Per site
Per Acre Per site Per site Per site
Impervious Area 100% 1.97 13.58
There are differences in factors, such as percentage of impervious coverage, that lead to
differing amounts of runoff for each of the single family, multi -family and
commercial/industrial parcels. To adjust for these differences averages were used to group
properties together. For example, a sample of single family properties revealed that the
average single family parcel was 16% impervious. Given this figure it can be calculated that
land utilized as single family will produce runoff of .29 per acre. A sample of commercial/
industrial property determined that commercial/industrial property was 64% impervious on
average. This was calculated to produce runoff of 1.04 per acre. The relationships regarding
the amount of runoff were then utilized to come up with a residential equivalent factor (REF).
This is done by taking the runoff produced by a property type other than single family and
dividing it by the average '/2 acre residential lot's runoff of .145.
Example: Commercial/Industrial (1.04)/(.145) 1/2 Acre Residential = 7.18
This REF can then be multiplied by the base residential rate per unit to determine the rate per
acre for other land uses. This is illustrated in the following two tables.
3
Surface Water Utility Rate Model
Single Family
Multi -Family
Commercial/Industrial
Churches
Schools
Public Lands - Occupied
Structure
Institutional
Golf Courses
Average
Source: Units and acres obtained from 2000
Comprehensive Plan.
96,416.72 1,157,000.68
Surface Water Utility Rate Model
Single Family
Multi -Family
Commercial/Industrial
Churches
Schools
Public Lands - Occupied
Structure
Institutional
Golf Courses
Average
Rate Per
REF Unit/Acre Units/Acres Dollars Month Dollars Year
1.00
1.00 2.50 14,815.00 37,037.50 444,450.00
3.32 8.30 927.55 7,698.67 92,383.98
7.18 17.95 2,473.93 44,407.04 532,884.52
2.62 6.55 208.48 1,365.54 16,386.53
2.76 6.90 471.46 3,253.07 39,036.89
3.32 8.30 194.78 1,616.69 19,400.29
2.34 5.85 73.59 430.50 5,166.02
13.58 33.95 17.9 607.71 7,292.46
Source: Units and acres obtained from 2000
Comprehensive Plan.
96,416.72 1,157,000.68
Surface Water Utility Rate Model
Single Family
Multi -Family
Commercial/Industrial
Churches
Schools
Public Lands - Occupied
Structure
Institutional
Golf Courses
Average 125, 341.74 1,504,100.89
Source: Units and acres obtained from 2000
Comprehensive Plan.
4
Rate Per
REF Unit/Acre Units/Acres Dollars Month Dollars Year
1.00 3.25 14,815.00 48,148.75 577,785.00
3.32 10.79 927.55 10,008.26 120,099.17
7.18 23.34 2,473.93 57,729.16 692,749.88
2.62 8.52 208.48 1,775.21 21,302.49
2.76 8.97 471.46 4,229.00 50,747.95
3.32 10.79 194.78 2,101.70 25,220.37
2.34 7.61 73.59 559.65 6,715.82
13.58 44.14 17.9 790.02 9,480.20
125, 341.74 1,504,100.89
Source: Units and acres obtained from 2000
Comprehensive Plan.
4
The single family, multi -family and commercial/industrial groups could be broken down still
further but that would require the examination of many hundreds if not thousands of individual
parcels. The attached document entitled, "Surface Water Utility Fee Structures - Other Metro
Communities", provides a comparison to how other communities have grouped their
properties.
Discussion Point Number Three
Revenue needs of the surface water utility appear to be in the $1,100,000 to $1,500,000 range.
Current Water Resources Fund Operating $473,000
Additional Unfunded Operating 120,000
Capital Expenditures 500,000
Subtotal $1,093,000
Street Sweeping (Currently General Fund) 175,000
Drainage Maintenance (Currently General Fund) 240,000
Subtotal 415,000
Total $1,508,000
Given these revenue needs, it seems likely that the monthly fee for a single family property
would be in the $2.50 to $3.25 range (see Surface Water Utility Rate Models above). The
following chart compares these rates to other communities in the metro area.
Savage 4.65
Burnsville 4.20
Golden Valley 4.00
Apple Valley 3.98
Bloomington 3.48
Brooklyn Center 3.33
Plymouth 3.25
New Hope 2.92
Shakopee 2.52
Plymouth 2.50
Eagan 2.03
St. Louis Park 2.00
Crystal 1.95
Edina 1.67
Lakeville 1.63
Eden Prairie 1.00
Rate as of March - 2001, increase.
k,
Surface Water Utility Fee Structures -
Other Metro Communities
Apple Valley Monthly Quarterly Annually
Single Family, Duplexes, Townhomes Per Unit 3.98 11.94 47.76
All other properties are calculated individually based on residential equivalents.
Exemptions
Public rights-of-way
Vacant, unimproved land with ground cover.
Bloomington Monthly Quarterly Annually
Cemeteries, Parks, Golf Courses
Single-family and Duplex Residential
Public and Private Schools and Institutional
Multiple -family Residential & Churches
Commercial and Industrial
Exemptions
Public rights-of-way
Brooklyn Center
Cemeteries, Golf Courses
Parks
Single Family, Duplex, Townhouse
Schools, Government Buildings
Multiple Family, Churches
Commercial and Industrial
Vacant Land
Burnsville
Single Family and Twinhomes
Townhomes and Mobile Homes
Apartments & Condos
Churches
Schools
Planned Open Space (Golf & Cemetarys)
Commercial
Industrial
Exemptions
Public rights-of-way
Vacant, unimproved land
City owned land
Per Acre 4.44 13.32 52
Per Unit 3.48 10.43 41
Per Acre 17.44 52.32 20£
Per Acre 24.69 74.06 29E
Per Acre 43.95 131.84 527
REF
8
REF Volume REF Quality TOTAL REF
0.41 0.50 0.43
1.00 1.00 1.00
1.36 3.05 1.67
2.18 3.21 2.37
3.79 6.10 4.22
Stormwater utility rates.xls
2/9/01
Monthly Quarterly Annually REF
Per Acre 3.33 10 40.00 0.25
Per Acre 6.67 20 80.00 0.5
Per Unit 3.33 10 40.00 1
Per Acre 16.67 50 200.00 1.25
Per Acre 40.00 120 480.00 3
Per Acre 66.67 200 800.00 5
Per Acre As Assigned As Assigned As Assigned
Standard Assumed
Monthly Quarterly Annually Runoff REF Impervious
Per Unit 4.20 12.60 50.40 0.42 1 30%
Per Unit 3.36 10.08 40.32 0.9 0.8 50%
Per Acre 42.88 128.65 514.58 1.43 10.21 65%
Per Acre 27.01 81.02 324.07 0.9 6.43 50%
Per Acre 12.60 37.80 151.20 0.42 3 30%
Per Acre 1.51 4.54 18.14 0.05 0.36 2%
Per Acre 55.48 166.45 665.78 1.85 13.21 75%
Per Acre 55.48 166.45 665.78 1.85 13.21 75%
Stormwater utility rates.xls
2/9/01
Crystal Monthly Quarterly Annually REF
Cemeteries, Vacant Per Acre 2.44 7.31 29.25 0.25
Parks & Railroads Per Acre 7.31 21.94 87.75 0.75
Two-family Residential Per Unit 1.95 5.85 23.40 1
Single Family Residential Per Unit 1.95 5.85 23.40 1
Institutional, Schools, Airport Per Acre 12.19 36.56 146.25 1.25
Multi -Family & Churches Per Acre 29.25 87.75 351.00 3
Commercial, Industrial and Warehouse Per Acre 48.75 146.25 585.00 5
Exceptions
Public Street Right -of -Way
Vacant Land With Substantial Ground Cover
Eagan Monthly Quarterly Annually REF
Low Density Residential Per Unit 2.03 6.08 24.32 1
Townhomes Per Unit 1.62 4.864 19.46 0.8
All other properties are calculated individually based on residential equivalents. Low density residential properties are assumed to be
1/2 acre and 26% impervious.
Exceptions
Public Street Right -of -Way
Vacant Land With Ground Cover
City Owned Land
Eden Prairie Monthly Quarterly Annually REF
Single Family/Duplex Per Unit 1.00 3.00 12.00 1.00
Industrial/Apartments/Railroad ROW Per Acre 9.90 29.70 118.80 3.30
Commercial/Office/Parking/Clinics Per Acre 12.69 38.07 152.28 4.23
Parks/Open Space/Golf Course Per Acre 1.38 4.14 16.56 0.46
Institutions (Churches, Schools, Government) Per Acre 11.22 33.66 134.64 3.74
Airport, Landfill Per Acre 2.46 7.38 29.52 0.82
Undeveloped (Agricultural; Rural Vacant) Flat Fee 3.33 10.00 40.00
Exemptions
Public right-of-way
Lakes
Wetlands
City Property
Edina Monthly Quarterly Annually
Single Family Homes & Duplexes Per Unit 1.67 5 20.00
Parks, Cemeteries & Golf Courses Per Acre 5.30 15.9 63.60
Churches & Multi -Family Per Acre 13.45 40.35 161.40
Commercial, Institutional & Industrial Per Acre 22.42 67.25 269.00
Exemptions
Public rights-of-way
Vacant, unimproved land
Golden Valley Monthly Quarterly Annually REF
Single Family/Duplex Residential Per Unit 2.67 8.00 32.00 1.00
Parks/Golf Courses Per Acre 4.00 12.00 48.00 0.50
Railroads Per Acre 6.00 18.00 72.00 0.75
Schools/Library/Churches Per Acre 12.00 36.00 144.00 1.50
Multi -Family Residential Per Acre 20.00 60.00 240.00 2.50
Commercial/Industrial Per Acre 40.00 120.00 480.00 5.00
Exemptions
Public rights-of-way
Stormwater utility rates.xls
2/9/01
Lakeville Monthly Quarterly Annually REF
Single -Family Residential Per Unit 1.63 4.90 19.6 1.00
Agricultural With Homestead Per Unit 1.63 4.90 19.6 1.00
Duplex Per Unit 0.82 2.45 9.8 0.50
Manufactured Homes Per Unit 0.41 1.23 4.9 0.25
Townhomes Per Unit 0.82 2.45 9.8 0.50
Apartments Per Unit 0.41 1.23 4.9 0.25
Commercial/Industrial Per Acre 6.86 20.58 82.32 4.20
Church, School, Institutions Per Acre 6.86 20.58 82.32 4.20
Golf Courses Per Acre 6.86 20.58 82.32 4.20
Parkings lots as a principal use Per Acre 6.86 20.58 82.32 4.20
Note: Parcels with an REF of 4.2 with less than 42% impervious surface can be adjusted by multiplying the fee by the percentage of
impervious surface and then dividing by 42%.
Exemptions
Cemeteries
Gravel Pits
Railroads
City owned properties except municipal liquor stores
Undeveloped land
Agricultural without a home
Street and highway right of way
Federal, county and state property
New Hope Monthly Quarterly Annually
Residential Per Unit 2.92 8.76 35.04
Commercial Per Acre 10.95 32.85 131.4
Commercial is residental rate times 1.5 - times 2.5 residential units per acre.
St. Louis Park Monthly Quarterly Annually REF
Golf Courses 3.00 9 36 0.3
Single Family - Duplex 2.00 6.00 24 1.00
Schools 11.00 33 132 1.10
Low Density Townhouse 14.00 42 168 1.40
Community Facilities 15.00 45 180 1.50
Nursing Homes 18.00 54 216 1.80
Multi-Family/High Density Townhouse 19.00 57 228 1.90
Religious Institutions 27.00 81 324 2.70
Commercial/Office/Industiral/Hopsital 29.00 87 348 2.90
Exceptions:
Public rights of way
Wetlands and public waters as defined by state law
Ponds designed and used exclusively for storrnwater retention or treatment purposes up to the 100 -year flood elevation
Undeveloped parcels
Undeveloped or natural state, county regional and city parkland
Railroads
City owned property
Savage Monthly Quarterly Annually REF
Residential Per Unit 4.65 13.95 55.80 1.00
Townhomes Per Unit 3.70 11.10 44.40 0.80
Commercial Per Acre 47.90 143.70 574.80 3.43
Industrial Per Acre 40.50 121.50 486.00 2.90
Multi -family, Churches, Govt Per Acre 31.60 94.80 379.20 2.27
Parks, Cemetarys Per Acre 10.70 32.10 128.40 0.77
Vacant Land Per Acre 8.35 25.05 100.20 0.60
Storrnwater utility rates.xls
2/9/01
Shakopee Monthly Quarterly Annually REF
Residential (1 or 2 family) less than 35% impervious Per Unit 2.52 7.57 30.28 1.00
Residential (3 to 6 family) 36% to 60% impervious Per Acre 15.14 45.42 181.68 2.00
Residential (7 family & up) 61% to 100% impervious Per Acre 30.28 90.84 363.36 4.00
Com, Ind, and Inst less than 35% impervious Per Acre 9.46 28.39 113.55 1.25
Com, Ind, and Inst less than 36% to 60% impervious Per Acre 18.93 56.78 227.10 2.50
Com, Ind, and Inst less than 61% to 100% impervious Per Acre 37.85 113.55 454.20 5.00
Improved Vacant and Parks Per Acre Assigned
Exemptions
Public right-of-way
Vacant, unimproved land with ground cover, including unimproved agricultural land with ground cover.
Cemeteries
Stormwater utility rates.xis
2/9/01