Agenda - Council - 12/19/2000 - Laserfiche WebLink

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I i I I I I I I I I I I I I I I I I CASE DISCUSSION REGAR. DIh'G CREDITS AVAILABLE FOR THE STORM DRAINAGE UTILITY Brian E. Olson, City Engineer Background: On November 2.3, 1999, the City Council introduced an ordinance creating a storm drainage utility. The utility was adopted on Janua~ l l, 2000. On June 27, 2000, the City Council adopted a resolution establishing the storm drainage utility fees by amending the 2000 schedule of rates, fees and charges. On July l l, 2000, the City Council adopted a resolution establishing the credits availab[e for the storm drainage utility. On October 10,2000, a public hearing was held to discuss the rates and charges for the storm drainage utility and on November 14, 2000, the City reaffirmed the storm drainage utility rates and charges. Observations: To successfully implement a storm drainage utility, the utility must be considered fair and equitable. The City Council has taken a large step in making th/s utility equitable by choosing a method that is based on the amount of impervious surface on each site rather than basing the utility charge on land use. Many utilities throughout the Twin Cities that have been successful in implementing storm drainage utilities have established a credit system to reWard local businesses and developments for beifig responsible for their storm drainage. The existing resolution offers up to a 25% credit for the rate of runoff from their site and up to an additional 25% credit for those proper~ies that provide a water quality benefit to the 'runoff from their site. In order to qualify for these credits, the property owner must apply for each' credit and provide the City with the justification for each credit. Issues that were raised at the November ldth City Council meeting that related to the credit system include: · Chan~ng the cfiteria:f6i, the modified method. · P,.etroactivity of approved credits. · Allowing credits higher than 50%. · C[ry calculation ofcredits for parcels that have a completed drainage plan. Modified Method The modified method was created to differentiate between the properties that had large areas of unimproved vacant area and those that very much more intensively developed. For examp.le, under the current Ordinance, the storm drainage utility clmrge for the Lin[cs golf course on 157 Avenue NW would have been $25,688 per year. The modified ~method yields a storm drainage utility charge of $1,583 per year. Tkis is consistent with the policy that the City does not bill undeveloped vacant property as most of the 236 acres of the golf course is undeveloped. The resolution that established the credits that are ava[laMe tbr the stoma drainage utility states that in order to be considered for the modified method the property must exceed 20 acres in size and be less than 152/o impervious.