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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