Agenda - Public Works Committee - 11/17/2009

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REVIEW DENNIS SHARP STORMW ATER UTILITY CHARGES By: Leonard Linton, Civil Engineer II Case # ~ Background: The City of Ramsey instituted a stormwater utility in 2000 by ordinance. The ordinance established that all single family properties would pay a uniform quarterly rate. Recognizing that each commercial/ industrial property is unique in size and hard surface cover, residential equivalent factors (REF) were established based to provide a relationship between commercial/ industrial properties and a typical half-acre single family dwelling. The REF for a site is based 011 the percent of impervious cover on the site. The residential equivalent unit (RED) for a commercial/ industrial site is the product of the acreage of the parcel multiplied by the REF for the site. The RED is used for determining the storm water utility rate each commercial! industrial property will pay. The Ordinance states property owners may appeal the determination of the RED for a particular parcel. If an error of more than 20% was made in the calculation the rate will be adjusted effective the quarter after receipt of the appeal, retroactive adjustments will not be made. Observations: The property at 14000 Sunfish Lake Boulevard was included in the original calculations for the storm water utility which were performed in 2000. The site area was 9.7 acres. Sharp and Associates, Inc. subsequently purchased the property and submitted a development application for the first phase of the property in 2001. They also submitted an application for the second phase of the property in 2001. The site area for both applications was listed at 9.7 acres. Both phases were approved by the City Council. The property was platted in 2002, this reduced area of the site for 14000 Sunfish Lake Boulevard to 4.066 acres, created 6451 McKinley with an area of 2.419 acres and created right-of-way for 140th Court and lots on the north side of 140th Court. Staff reviewed all commercial stormwater utility accounts in 2004, comparing the city database with the billing records from Connexus. The property at 6451 McKinley Street was not being billed for stormwater utility. Billing was started in April 2004 using an RED of 16.3 based on 4.299 acres and 78% impervious cover. Mr. Dennis Sharp requested a review of the stormwater utility charges at 14000 Sunfish Lake Boulevard, 6451 McKinley Street and 6250 Bunker Lake Boulevard in May 2009. All three are under common ownership and have similar building and parking configurations. The review was concluded in October 2009 and determined that the change of RED for 6451 McKinley exceeds 20% and should be changed. The rate changes for the other two properties do not exceed the 20%; however, since all are under the same ownership and the same calculation method was used the following rates should be used: Property Name Address Area (ac) Exist RED Proposed RED % Change Sunfish Gateway I 14000 Sunfish Lake Blvd 4.066 18.000 16.062 -10.8 % Sunfish Gateway II 6451 McKinley Street 2.419 16.3 10.254 -37.1% Sharp Business 6250 Bunker Lake Blvd 5.580 22.040 20.927 -5.05% Incubator