Agenda - Public Works Committee - 06/20/2000

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CASE UPDATE ON IMPLEMENTATION OF STORM DRAINAGE UTILITY Brian E. Olson, City Engineer Background: On November 23, 1999, the City Council introduced an ordinance creating a storm drainage utility. The utility was adopted on January 11, 2000, and anticipated to be complete and implemented on the April 2000 utility bills. The purpose of this case is to provide an overview of the tasks that still need to be completed for implementation to occur. An important element of the implementation of a storm drainage utility is public acceptance and accuracy of the charge that is introduced to the utility bills. The next available opportunity to get the storm drainage utility charges implemented onto the electric bills with Connexus is July 1, 2000. The following is a list of tasks that are required before the data can be sent to Connexus: · There are approximately 100 (1/3 of the City) commercial and industrial lots left to analyze to calculate a charge for each. · Based on the actual total of Residential Equivalency Units (REUs) for the entire City, a charge per REU be established by signed City Council resolution. Discussion on whether or not there should be a credit available to properties that have on-site measures to slow or eliminate the runoff from their development. · Adjustment of ordinance to include credit application procedure and to clarify whether a one or five year rainfall event is to be used. · Determination of charges for unusual businesses to be discussed and procedures determined. (Ie. Armstrong Kennels, Northfork Golf Course, Boy Scout Camp, etc.) · Discussion of whether or not the credit system be retroactive for the first billing cycle to give residents and businesses of the City of Ramsey an opportunity to dispute the first quarter bill. · Discussion of City allocation procedures for buildings with multiple tenants and multiple utility bills. Since the amount required annually has been previously estimated at $350,000, the delay of the implementation process for one more quarter will mean the decrease of approximately $87,500 in revenue for this fund for the fiscal year of 2000. Although this is a substantial amount of money, staff recommends the delay of implementation for one quarter to resolve these issues and provide all of the residents and businesses of the City of Ramsey the most equitable storm drainage utility as practical. During the public works committee meeting, staff will explain other alternatives and the pros and cons of each. Committee Action: Based on discussion Reviewed by: City Administrator Finance Officer PW: 6/20/00 Users\bolson\swutS0620pwcc.doc