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HomeMy WebLinkAbout20091207 - VIII-A-1 MEMO To:Honorable Mayor and City Council From:Tom Montgomery Date:December 2, 2009 Re:Storm Water Utility Rates – First Reading and Order Public Hearing on City Fee Ordinance Amendment Enclosed for Council consideration is a proposed amendment to the City’s fee ordinance establishing storm water utility rates. The proposed storm water utility rates were developed by taking the anticipated funding needs, $467,000, and spreading that cost over the 10 property classifications based on their amount of impervious surface and runoff generated from a 10 year storm event. Funding Needs The proposed storm water utility rates were established by first developing the funding needs of the City’s storm water system, including staffing, operations and maintenance, existing and future regulatory requirements, and capital improvements. A copy of the anticipated funding needs totaling $467,000/year is enclosed. Approximately $233,000 of the $467,000 funding needs is proposed to be transferred to the General Fund as part of the 2010 budget. The original funding needs analysis developed in early September was $714,700. The Operations Committee initially reduced this amount to $552,200 and then further reduced the funding needs to the proposed $467,200 amount in late October, reducing the funding needs by almost $250,000. Rate Comparisons Currently, there are 100 communities within the greater Twin Cities metropolitan area who have established storm water utilities. The storm water utility rates of other metropolitan area storm water utilities were investigated to provide the City with a comparison of rates. The following shows a comparison of low density residential rates for other municipalities: Due to the differences in methodology used to calculate storm water utility fees for commercial and industrial land use in the various cities used in the comparison, two comparisons are provided below. The first comparison is based on 1-acre of the specified land use with the impervious coverage typical for that land use in the City of Hastings. The second comparison is an actual property located in the City of Hastings (Wal-Mart and Westview Packaging) for which the storm water utility fees have been calculated for each comparison city. Rate Adjustments If Council wishes to lower the proposed rates, the annual anticipated funding needs of $467,000 should be lowered, with these anticipated expenses either pushed back to future budgets or funded as we are currently doing – through the General Fund or debt levy. I do not recommend adjusting the storm water utility structure and proposed Residential Equivalency Factors (REF). Arbitrarily assigning REF for various property classifications could result in a legal challenge to the storm water utility, as Minneapolis found out when their original storm water utility that established fees based on domestic water use was thrown out. Council Action Requested Council is requested to hold the first reading and order a public hearing on the enclosed City fee ordinance amendment establishing storm water utility rates. CITY OF HASTINGS, MINNESOTA ORDINANCE NO. 2009- , THIRD SERIES AN ORDINANCE OF THE CITY OF HASTINGS, MINNESOTA AMENDING CHAPTER 34 OF THE HASTINGS CITY CODE PERTAINING TO FEES FOR LICENSES, PERMITS, RENTALS, LEASES AND MUNICIPAL SERVICES BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF HASTINGS AS FOLLOWS: Chapter 34 of the Hastings City Code is hereby amended as follows: Section 34.03 Fee Schedule. The fees for license, permits, municipal services, rentals and leases are amended as set forth below: Public Works Storm Water Utility RatesRates are per quarter Low Density Residential$10.96Per lot Medium Density Residential$6.58Per lot High Density Residential$46.03Per acre Manufactured Housing$36.17Per acre Commercial/Office$62.47Per acre Industrial$52.61Per acre Public/Institutional$36.17Per acre Golf Course$4.11Per acre Open Space/Vacant$10.96Per lot Agricultural$10.96Per lot All other sections shall remain unchanged MEMO To: Honorable Mayor and City Council From: Tom Montgomery Date: December i, 2009 Re: Storm Water Utility -First Reading and Order Public Hearing Enclosed for Council consideration is a proposed ordinance establishing a storm water utility. The storm water utility would establish io property classifications with corresponding storm water utility rates based on the average amount of impervious surface for each property classification and the amount of storm water runoff generated from each property classification from a io year storm event equivalent to a 4.i inch rainfall. Funding Needs The proposed storm water utility rates were established by first developing the funding needs of the City's storm water system, including staffing, operations and maintenance, existing and future regulatory requirements, and capital improvements. A copy of the anticipated funding needs totaling $46~,ooo/year is enclosed. Approximately $233,000 of the $46~,00o funding needs is proposed to be transferred to the General Fund as part of the 2oio budget. Rate Structure The proposed storm water utility rates were developed by taking the anticipated funding needs, $46,000, and spreading that cost over the io property classifications based on their amount of impervious surface and runoff generated from a io year storm event. I have enclosed a copy of the Storm Water Utility Report, with the table in Appendix A showing rates and expected revenues for each property classification, along with each property classification's average percentage of impervious surface and volume of storm water runoff generated. Credits and Other Details Agricultural properties and Open Space/Vacant (undeveloped) properties generally do not generate a lot of storm water runoff that ends in the City's storm water system, and yet these properties are included in the City's storm water permit and regulatory requirements. To cover their share of the storm water permit and regulatory costs, these properties are proposed to be charged the same as a single family property - $io.96/lot/quarter -regardless of the size of the lot. ;~r,,~~__ The proposed ordinance also contains a credit provision. ~ ' ``- ~ "` If a property is able to hold the runoff from a io year storm : ~ ~~ - ~ ~~. CITYf1~ Iia~~TIFI~S entirely within their property, that property would receive a 50 % credit on its storm water utility charge. At this time, two properties are known to be eligible for this credit; the Hastings Country Club which not only holds a large percentage of runoff within its boundaries, but also runoff from adjacent neighborhoods; and Three Rivers Mobile Home Park, which retains and infiltrates its runoff along with part of the 31tit Street and Malcolm Avenue neighborhood runoff. Storm Water Utility Rates The storm water trtility rates will be considered as a separate agenda item as these new charges need to incorporated into the City's fee ordinance. If Council wishes to adopt a storm water utility ordinance but also make adjustments to the proposed storm water utility rates, the rate adjustments would be made by way of the City's fee ordinance amendment. Council Action Requested Council is requested to hold the first reading on the proposed storm water utility ordinance and order a public hearing on the ordinance for the December 21~t Council meeting. 51.10 Storm Water Utility (A) Statutory Authority: Minnesota Statute, Section 444.075 authorizes cities to impose just and equitable charges for the use and availability of storm sewer facilities. By this section the City elects to exercise such authority, establishing a municipal storm water utility. (8) Purpose: It is the intent of this article to establish a storm water utility to collect charges to finance costs associated with the operation and maintenance of the City's storm sewer system and implementation of storm water management programs, and storm water improvements. (C) Land Use: For the purpose of the storm water utility, land use categories are defined as follows: (1) Low Density Residential: Detached single family dwellings less than five acres in size. For the purposes of calculating storm water utility fees, all low density residential units are assumed to be 1 /3 acre in size. (2) Medium Density Residential: Lots containing multiple dwelling units such as duplexes, town houses, quad homes, and associated common open space that is privately owned. For the purposes of calculating storm water utility fees, all medium density residential units are assumed to be 1 /6 acre in size. (3) High Density Residential: Multiple dwelling units such as apartment complexes and senior housing, which are comprised of multiple levels of individual dwellings. (4) Manufactured Housing: Manufactured and mobile homes that are part of a common manufactured home park. (5) Commercial: Properties that contain retail sales, offices, professional services, hotels or motels and private recreational facilities operated for profit such as theaters and bowling alleys, (6) Industrial: Properties used for general contracting, manufacturing, warehousing, goods movement facilities, communications, utilities, and wholesale trade. (7) Public/Institutional: Schools, religious institutions, churches, state and federal government facilities, and Dakota County government offices and library. (8) Golf Course: Public and private golf courses (9) Agricultural: Undeveloped land which is used primarily for agricultural purposes and may include a homestead or other structures. (10) Open Space/Vacant: Undeveloped land that is used for non-agricultural purposes, such as cemeteries and vacant lots with no existing structures. (D) Rate Structure: The charges imposed as a part of this storm water utility shall be derived from parcels net acreage and residential equivalency factor (REF). The REF is defined as the ratio of runoff volume generated by one acre of land to the runoff volume generated by one acre of low density residential land. The residential equivalency factors for each land use established as part of this storm water utility shall be as follows: Land Use REF Low Densit Residential 1.0 Medium Density Residential 1.7 High Density Residential 2.0 Manufactured Housing 1.1 Commercial/Office 2.5 Industrial 1.9 Public/Institutional 1.1 Golf Course 0.5 Open Space/Vacant 0.3 Agricultural 1.0/parcel (1) All storm water utility fees shall be calculated based on the following formula: (REF)(Base Rate as established by the City Council) =Rate per Acre (2) Low Density Residential and Medium Density Residential parcels shall be charged on a per unit basis with respect to the average lot sizes described above. Agricultural parcels shall be charged 1.0 REF regardless of parcel size. All other land uses shall be charged on a per acre basis. (3) The quarterly base rate shall be established by City Council and amended by Council annually as deemed necessary. (4) Exemptions: The following land uses are exempt from the storm water utility fee: • Public rights-of way • Delineated wetlands, lakes, ponds and rivers • Land outside of the city • Other properties as deemed appropriate by the City Council (E) Billing, Payment and Penalty: These charges shall be included on the utility accounts of each property and are payable in accordance with the provision for filing and payment of municipal utility bills. Penalties for late payment or non-payment of billings for charges shall be the same as those applicable for municipal utility billings. (F) Rate Appeal: Property owners may appeal their storm water utility fee by providing data demonstrating that the actual storm water runoff volume from their site is substantially different from that of the assigned Land Uses. These appeals shall be made to the City Administrator who may recommend adjustments to individual parcels based on the information provided to the City Council for consideration. No adjustments to the utility fee shall be made retroactive. (G) Credits: Properties of two acres in size or greater may receive a 50% credit on their storm water utility charge by installing and maintaining storm water runoff control features that retain 100% of the property's runoff from a 10 year storm event, defined as a 4.1 inch rainfall. The City Administrator shall determine whether a storm water runoff control feature meets the credit criteria and is being properly maintained. Failure to properly maintain a storm water control feature may result in loss of the credit. Anticipated Future Expenditures Storm Water Utility Report City of Hastings Anticipated Future Expenditures (next 5 years) -• -• Upgrade and extend existing storm sewer systems Annual Costs $40,000 Total 5 Year Cost $200,000 Provide water quality treatment BMPs at redevelopment sites $40,000 $200,000 Identify and install new storm water treatment facilities as part of street reconstruction $30,000 $150,000 Pond sediment removal and improvements $15,000 $75,000 Street sweeper replacement $25,000 $125,000 Vactor replacement $15,000 $75,000 Backhoe replacement $5,000 $25,000 SUBTOTAL Assistant Engineer (50% of time spent on storm water management) $170,000 $50,000 $850,000 $250,000 Erosion Control Inspector (25% of Engineering Technician's time) $18,000 $90,000 Public Works Operator (20% of time spent on outfall inspection) $13,000 $65,000 Street sweeping labor costs $54,000 $270,000 Storm water permit tracking software and hosting fees $1,700 $8,500 General staff time (10% Nick, John, Tom) $40,000 $200,000 Ponding Basin Mowing $4,000 $20,000 Screening Spring Sweepings $4,000 $20,000 Composting, Treating, & Screening Fall Leaf Sweepings $4,000 $20,000 SUBTOTAL •- -• -~ Maintenance and operation program for storm water system $188,700 $50,000 $943,500 $250,000 Review and revise storm water management ordinances/regulations $9,000 $45,000 Coordinate and implement City public education, outreach, and involvement $3,500 $17,500 Implementation plan for Lower Vermillion River and Mississippi River TMDLs $10,000 $50,000 SUBTOTAL •- ~ Update and renew MS4 storm water permit and SWPPP $72,500 $3,000 $362,500 $15,000 Amend and revise watershed management plan (2016-2017) $10,000 $50,000 Non-degradation study $15,000 $75,000 Wetland delineation/management plan $8,000 $40,000 SUBTOTAL $36,000 $180,000 TOTAL 467 200 2 336 000 "Costs taken from City of Hastings Watershed Management Plan have been annualized to estimate average yearly revenue required to meet the City's storm water needs 12/1/2009 \\Engineering1-O5\engineering\Stormwater Protection & NPDES\Stormwater Utility\Copy of Funding Needs 102809 ~JI^-~~J11~ December 2, 2009 Stormwater Utility Fee _ ~. ` ~. - .,~ ~~ ~~^~r~ ~- WSB Project No. 1784-01 701 Xenia Avenue South, Suite 300 Minneapolis, MN 55416 763-541-4800 Prepared for: ~~~ & Associates. Inc. STORM WATER UTILITY REPORT Prepared for the City of Hastings December 2, 2009 Prepared By: WSB & Associates, Inc. 701 Xenia Avenue South, Suite 300 Minneapolis, MN 55416 (763) 541-4800 (763) 541-1700 (Fax) Stone tii'ater Utility Report City of H~~stings T~YSBProject l'0.178~1-01 CERTIFICATION I hereby certify that this plan, specification or report was prepared by me or under my direct supervision and that I am a duly Licensed Professional Engineer under the laws of the State of Minnesota. _ /~--/ Todd E. Hubmer, PE Date: December 2, 2009 Lic. No. 24043 Storm Water Utility Report City of Hastings WSB Project No.1784-01 TABLE OF CONTENTS TITLE SHEET CERTIFICATION SHEET TABLE OF CONTENTS I. EXECUTIVE SUMMARY ................................................................. .............................2 IL INTRODUCTION AND PURPOSE ................................................... .............................3 III. ELIGIBLE EXPENDITURES/REVENUE NEED .............................. .............................4 IV. RATE STRUCTURE JUSTIFICATION ............................................. .............................6 A. Determination of Land Use ......................................................... ............................. 6 B. Determination of Land Cover by Land Use ................................. ............................. 7 C. Determination of Runoff Volume by Land Use ............................ ............................8 D. Calculation of Residential Equivalency Factors ............................ ............................ 8 E. Storm Water Utility Rate Structure ............................................. .............................9 F. Fee Crediting Criteria ................................................................. ............................. 9 G. Exemptions ................................................................................. ............................9 H. Comparison of Storm Water Utility Rates ................................... ........................... 10 V. ADMINISTRATIVE PROCESS ........................................................ ...........................12 A. Billings and Collections ........................................ B. Administering Funds ............................................. C. Appeal Process ..................................................... D. Rate Adjustments .................................................. E. Public Education .................................................. LIST OF APPENDICES .................................................12 ................................................. 12 .................................................12 .................................................12 ..................................................13 A. SUMMARY OF UTILITY RATES AND PROJECTED ANNUAL REVENUE B. EXISTING LAND USE MAP C. STORM WATER RUNOFF CALCULATIONS D. DRAFT STORM WATER UTILITY ORDINANCE E. STORM WATER RATE APPEAL FORM F. EDUCATIONAL MATERIAL Stone tii'aterLtilityReport City> o f H~s7ings T I SB Projeet ~ti'o.178-t 01 Pnge 1 L EXECUTIVE SUMMARY The purpose of this report is to establish a storm water utility fee for the City of Hastings. The storm water utility will collect the fees necessary to provide for the maintenance, improvement, replacement, and administration of the City's storm water collection, treatment, and storage systems. The costs associated with storm water management and maintenance for the entire City is projected to be $467,200 annually for the next five years. This report provides the basis for establishing the fee structure for the storm water utility. The fee stricture is based on the contribution of storm water nuloff volume by the various land uses within the City. Each land use is compared to the runoff generated from a low density residential uiit to determine a ratio referred to as a Residential Equivalency Factor or REF. REFS for the City of Hastings are shown below: Land Use REF Low Density Residential 1.0 Medium Density Residential 1.2 High Density Residential 1.4 Manufactured Housing 1.1 Commercial/Office 1.9 hldustrial 1.6 Public/histitutional 1.1 Golf Course 0.5 Open Space/Vacant 0.5 Agricultural 0.5 The storm water utility fee is proposed to be set initially at $10.96 per quarter or $43.84 annually for a low density residential unit. (See Appendix A) The City Council may adjust the rates of the storm water utility on an annual basis or as necessary to meet the financial needs of maintaining the City's storm water collection, treatment, and storage systems. Ii7dividuals or businesses wishing to appeal the City's fee structure for their parcel must provide data demonstrating the storm water nmoffvolumefrom their parcel is significantly different than the information utilized in this report. It is proposed that this shall be done on an administrative basis by the City Engineer, and that any major rate changes would be brought before the City Council for consideration. Stone tii'ater Utility Report City> o f H~s7ings YI SB Projeet ~ti'o.178;t 01 P~~ge 2 II. INTRODUCTION AND PURPOSE This Storm Water Utility Report is prepared for the City of Hastings to establish the methods and procedures for implementation of a storm water utility under Mim7esota Statute Section 444.075. The City of Hastings desires to collect just and equitable charges for the use and availability of storm sewer systems for the collection and disposal of storm water. A storm water utility fee is very similar to water and salutary sewer utility fees that residents currently pay. A storm water utility fee is charged to individual parcels and is typically based on the percent impervious and/or the amount of storm water runoff generated from an individual site or land use. These utility fees are collected for the purpose of maintaining the City's existing storm water conveyance systems, detention ponds, storm water treatment basins, wetland mitigation sites, and infiltration basins within the community. These storm water fees can also be used to implement the requirements outlined in the City's NPDES Phase II Storm Water Pollution Prevention Plan (SWPPP) and the Watershed Management Plan (WMP). Stone tii'ater Utility Report City> o f H~s7ings YI SB Projeet ~ti'o.178;t 01 P~~ge 3 III. ELIGIBLE EXPENDITURES/REVENUE NEED Eligible expenditures of storm water utility funds within the City of Hastings may include but are not limited to the following activities: • Maintenance and repair of the City's storm water ponds, collection systems, and storm water treatment systems. • Replacement of trunk and lateral stone water conveyance systems. Required public improvements, educational programs, staff training, administration, and other activities as required by the National Pollutant Discharge Elimination System (NPDES) as administered by the Minnesota Pollution Control Agency (MPCA). • Administration of the storm water utility fund. • Development of, and future updates to the City's Wetland Management Plan. • City of Hastings street sweeping program. • Development of, and firture updates to the City's Watershed Management Plan. • Erosion and sedimentation control inspections. • Preparation and revisions to the City's Storm Water Utility Report. • Studies, programs, and capital improvements as outlined by the City. The determination as to whether a project is eligible to be funded from the storm water utility will lie with the City Administrator or City Engineer. For the purposes of establishing storm water utility rates, the amount of funding needed was estimated based on existing and anticipated storm water management expenses. The following provides a breakdown of the estimated expenditures for storm water related capital improvements, stone water management, operation and maintenance programs, and stone water management studies anticipated to be undertaken by the City of Hastings annually over afive-year period: Capital knprovement Projects - $170,000/year • Upgrades to the existing storm sewer Construction of water quality treatment best management practices Maintenance equipment replacements Staff Costs - $188,700/year Erosion control and storm sewer inspections Street sweeping and pond basin mowing General staff time spent on stone water management Storm Water Management Programs - $72,500/year • Operation and maintenance of storm sewer system • Review/revise stornl water management ordinances/requirements • Coordinate public education • Implementation plan for Total Maximum Daily Loads (TMDL) Stone tii'ater Utility Report City> o f H~s7ings YI SB Projeet ~ti'o.178;t 01 P~~ge Storm Water Management Studies - $36,000/year • Update Watershed management plan • State and Federal Requirements (MS4 permit, Non-Degradation, etc • Wetland Management Plan TOTAL EXISTING AND ANTICII'ATED COSTS - $467,200 Stone tii'ater Utility Report City> o f H~s7ings YI SB Projeet ~ti'o.178;t 01 Ptige i IV. RATE STRUCTURE JUSTIFICATION This section outlines pertinent issues and considerations related to developing the storm water utility in such a manner as to assign costs to parcels in a reasonable way. Based on this premise, land uses that have a high percentage of impervious surfaces, which generate large volumes of runoff, such as commercial and industrial areas, will be charged more than land uses that have a small amount of impervious surface, which generate less nmoff, such as low density residential areas. The City code should be updated to reflect the rate structure determined in this report. A draft ordinance can be found in Appendix D. The following activities were completed to establish a storm water utility rate stricture for the City of Hastings: A. Determination of Land Use The land use map provided in Appendix B shows the existing land use of the City. Estimated parcel counts and acreages have been generated from this data in order to project the amount of revenue the storm water utility will generate. For the purposes of the storm water utility, land use definitions have been modified slightly from those found in the City's Comprehensive Plan and are provided below: Low Density Residential This land use category includes detached single family dwellings less than five acres in size. For the purposes of calculating storm water utility fees, all low density residential units are assumed to be 1/3 acre in size. Medium Density Residential This land use category includes lots containing multiple dwelling units such as duplexes, town houses, quad homes, and associated common open space that is privately owned. For the purposes of calculating storm water utility fees, all medium density residential unts are assumed to be 1/6 acre in size. High Density Residential The High Density Residential land use category includes multiple dwelling units such as apartment complexes and senior housing, which are comprised of multiple levels of individual dwellings. This land use typically has a higher percentage of impervious surfaces than medium density residential. Manufactured Housing This category includes manufactured and mobile homes that are part of a common manufactured home park. Commercial The Commercial land use includes properties that contain retail sales, offices, professional services, hotels or motels and private recreational facilities operated for profit such as theaters and bowling alleys, Stone tii'ater Utility Report City> o f H~s7ings YI SB Projeet ~ti'o.178;t 01 P~~ge 6 Industrial The Industrial land use includes properties used for general contracting, manufacturing, warehousing, goods movement facilities, communications, utilities, and wholesale trade. Public/Institutional This land use category includes schools, religious institutions, churches, state and federal government facilities, and Dakota County government offices and libraries. Golf Course This category includes both public and private golf courses. Agricultural The Agricultural land use category includes undeveloped land which is used primarily for agricultural purposes and may include a homestead or other stn~ctures. Open Space/Vacant This category includes undeveloped land that is used for non-agricultural purposes, such as cemeteries and vacant lots with no existing structures. B. Determination of Land Cover by Land Use The amount of impervious surface was determined by reviewing aerial photos for each land use within the City and measuring the impervious surfaces within representative samples of each land use. All buildings and paved surfaces were digitized within the sample parcels using GIS. The percent of impervious surfaces within each land use was calculated by dividing the area of impervious coverage by the total area of each land use sample. The impervious surface coverage measured for each land use is summarized below: Land use Low Density Residential Medium Density Residential High Density Residential Manufactured Housing Commercial/Office Industrial Public/h7stitutional Golf Course Open Space/Vacant Agricultural Percent Impervious 29% 40% 54% 33% 81% 61% 33% 0% 0% 0% Stone tii'ater Utility Report City> o f H~s7ings YI SB Projeet ~ti'o.178;t 01 P~~ge 7 C. Determination of Runoff Volume by Land Use The amount of runoff volume each laird use generates was calculated using the SCS runoff method. These nmoff volumes are shown in Appendix A and Appendix C. The 10-year, SCS type II 24-hour storm event was utilized to determine runoff volumes for each land use. The 10-year return frequency storm event for the City of Hastings is 4.1 inches of rainfall in a 24 hour period. Dakota County soil survey data indicates that the underlying soils for the City of Hastings are primarily group A and group B hydrologic soils. It was assumed that development has provided extensive grading of the underlying soils and introduced additional topsoil to serve as bedding for sod. Under these conditions soils tend to display properties of hydrologic group B. For this reason a curve number of 61 was used for pervious area and a curve number of 98 was used for impervious area as established in the Soil Conservation Service National Engineering Handbook for the rainfall runoff volume analysis. The 10-year storm event is the stonll water conveyance system design storm and as such was selected for the City of Hastings as the basis of the nuloff volume analysis D. Calculation of Residential Equivalency Factors The Residential Equivalency Factor (REF) is defined as the ratio of volume of runoff generated by one acre of land to the volume of nuloff generated by one acre of low density residential land. A REF of 1.0 is assigned to one acre of low density residential land use. The average unit size in the City of Hastings approximately three (3) low density residential units to one acre. The table below provides the REFS for all land uses based on their annual average nmoff volume. (See also Appendix A) Land Use Low Density Residential Medium Density Residential High Density Residential Manufactured Housing Commercial/Office Industrial Public/111stitutional Golf Course Open Space/Vacant Agricult<~ral Residential Equivalency (REFS 1.0 1.2 1.4 1.1 1.9 1.6 1.1 0.5 0.5 0.5 Since the REF is based on the nuloff generated by any given property, the same REF can be used throughout the City and is not dependent on the stormwater management for that area. Stone tii'ater Utility Report City> o f H~s7ings YI SB Projeet ~ti'o.178;t 01 P~~ge R E. Storm Water Utility Rate Structure The storm water utility base rate is proposed to be set at $32.88/acre per REF quarterly. Under this base rate the charge for one low density residential unit (1/3 acre) will be $10.96 per quarter or $43.84 am7ually. The proposed quarterly charges for each land use within the City are listed in Appendix A. The following formula can be used to derive the quarterly utility charge per parcel from the utility base rate and the land use group REF: (REF)x(Base Rate)x(Net Acreage) =Quarterly Charge Net Acreage =Total Acreage -Wetland Acreage For example, commercial parcels have a REF of 1.9. The quarterly charge fora 3 acre parcel of commercial land use will be $187.41 (1.9)($32.88/acre)(3 acres) _ $187.41/quarter By setting the storm water utility rate at $32.88/acre per REF quarterly, this storm water utility rate stricture is anticipated to generate approximately $467,200 per year. Appendix A provides a breakdown of the anticipated annual revenue generated by each land use. F. Fee Crediting Criteria A crediting policy will be implemented as part of the proposed storm water utility. This will include fee discounts for properties which contribute very little or no storm water nu~off into the City's storm sewer system and applies only to properties with net area greater than two (2) acres. Agricultural and Open Space/Vacant land uses may not participate in this procedure, because they are proposed to be charged a per uiut rate. Parcels may not receive 100% credit by meeting the criteria outlined below, because all non-exempt properties are assumed to be benefiting from the City storm water utility through administrative, maintenance, permitting, educational, water quality, and flood protection services provided through the storm water utility. Crediting criteria established under the proposed storm water utility include the following: 1. 50% fee reduction for properties which demonstrate onsite retention of all storm water runoff volume generated in the 10-year storm event. G. Exemptions As deemed appropriate by the City Council, select properties within the City may be considered exempt from incurring charges under the storm water utility. The following properties will be considered exempt: • All parcels owned by the City of Hastings. • The Minnesota Department of Natural Resources • The Veteran's Home • The United States Army Corps of Engineers Stone tii'ater Utility Report City> o f H~s7ings YI SB Projeet ~ti'o.178;t 01 P~~ge 9 • All street and railroad rights of way These spaces are proposed to be exempted from incurring charges under the storm water utility because they are not anticipated to benefit from the City's storm water management program significantly or are under ownership of the City of Hastings malting any billings redundant. H. Comparison of Storm Water Utility Rates Currently, there are 100 commuiuties within the greater Twin Cities metropolitan area who have established storm water utilities. The storm water utility rates of other metropolitan area storm water utilities were investigated to provide the City with a comparison of rates. The following shows a comparison of low density residential rates for other municipalities: Table 1: Low Density Residential Fee per Unit Annual Lori Density Cih' Residential Fee Lahe~711e $24.00 South St. Paul $30.00 Farmington $ ~ 6.00 Red Wing $37.60 Hastings $~3.8d Rosemount $4728 Apple Vallee $47.76 Cottage Choi e $48.00 Woodbu~-~- $69.20 Burns°ille $7.36 Due to the differences in methodology used to calculate storm water utility fees for commercial and industrial land use in the various cities used in the comparison, two comparisons are provided below. The first comparison is based on 1-acre of the specified land use with the impervious coverage typical for that land use in the City of Hastings. The second comparison is an actual property located in the City of Hastings (Walmart and Westview Packaging) for which the storm water utility fees have been calculated for each comparison city. Table 2: Commercial Land use Fee Com arison Annual Commercial Annual Fee: Walmart CitS- Fee (1 acre) (86% im er~~ious, 20.23 acres) Lahe~ille $100.80 $2.039.18 Cottage Cn-o~ e $155.52 $3,340.80 Red Wing $159.96 $3.235.99 Rosemount $219.12 $4,432.80 South St Paul $228.00 $4,612.44 Hastin6s $29.89 $~ 0~~.27 Woodbuiv * $272.36 $5.833.16 Farmington $496.58 ~ 10.045.81 Apple Valleti~* $604.16 $13,642.53 Burns-ille $995.51 $20.139.17 Stone tii'ater Utility Report City> o f H~s7ings YI SB Projeet ~ti'o.178;t 01 Pnge10 Table 3: Industrial Land use Fee Comparison Annual Industi°ial Annual Fee: West~~ieR Packaging Cih~ Fee (1 acre) (J1% nnper~ious, x.56 acres) Ked Wing $83.04 $461.70 Cottage Grove $97.92 $547.20 Lakeville $100.80 $560.45 Woodbui~-'` $191.07 $1,062.35 Hastin s $210.3 $1169.99 Rosemount $219.12 $1,218.31 South St Paul $240.00 $1,334.40 Apple Vallee $261.25 $1,452.53 Farmington $418.18 $2.325.08 Burnsville $995.51 $5.535.04 ~In some cases, municipalities charge coimnercial and industrial land uses based on individual impervious surface measurements. The fee provided for sample properties accounts for this approach. Stonii tii'ater Utility Report City> o f H~s7ings YI SB Projeet ~ti'o.178;t 01 Pngell V. ADMINISTRATIVE PROCESS Implementation of the stone water utility fee will require the cooperation of several departments within the City of Hastings. Different segments of City staff will be responsible for billing and collection of fees, administration of the utility as well as the review of appeals associated with the fee stn~cture. A. Billings and Collections The City's Finance Department will be responsible for billing the storm water utility fee to all properties within the City of Hastings. This will be accomplished by adding an additional line item for the storm water utility fee to the City's existing water and sewer bills. The Finance Department will also be responsible for tracking the collection of the storm water utility fees. Billings will be prepared for parcels which currently do not receive a utility bill, or are not connected to the City's sewer and water system. B. Administering Funds The City Engineer will be the administrator of the storm water utility. The administrator will be responsible to make deternunations as to which projects and activities are eligible for funding through the use of storm water utility fees. The administrator will also be responsible for reviewing appeals and malting adjustments, if necessary, to storm water utility charges through the appeal process. C. Appeal Process Property owners may appeal their storm water utility fee by providing data demonstrating that the actual storm water runoff volume from their site is substantially different from the calculations for the class of parcels within this storm water utility report. An appeal form must be completed as part this process. (See Appendix E). These appeals should be made to the utility administrator who will make recommendations to the City Council on adjustments to individual parcels. However, in no circumstance shall adjustments to the utility fee be made retroactive. Should the proposed adjustment affect the charge and the calculation for all or substantially all of the land uses in a particular land use, the administrator will bring the proposed adjustments to this classification before the City Council who will consider modifying and amending the class charge rate calculation table. D. Rate Adjustments The Stone Water Utility Fee Rates and Stricture may be modified based on the storm water needs of the City. Adjustments to the Storm Water Utility Fee Rates and Structure can only be made by the City Council. Stone tii'ater Utility Report City> o f H~~stings YI SB Projeet ~ti'o.178-t 01 Pnge 12 E. Public Education The City will make efforts to educate its residents on the purpose and implementation schedule of the storm water utility. This will include articles in the official newsletter indicating the needs and the proposed rates of the storm water utility. This information along with this report will also be made available to residents on the City's website. A sample educational flyer can be found in Appendix F. Stone tii'ater Utility Report City> o f H~s7ings YI SB Projeet ~ti'o.178;t 01 Pnge 13 APPENDIX A SUMMARY OF UTILITY RATES AND PROJECTED ANNUAL REVENUE Stor~it T~Y'~uer L'tiliry Report City of H«s7ings WSBProjeet ~'o. 178~t 01 d d d a L N N L }+ ~U Q w 0 E E N ~~ o~ ~~ o U 1 (6 w U O N (6 1 'Y O C N ~ ~ O '~ (6 N N ~ (6 a ~ ~ ~ N Q ~ (6 O O J N O -O O N U ~ (6 ~ ~ ~ N (6 j N ~ (6 C ~ ~ ~ II r- LL N U (6 O (6 N N a N (6 N N U 0 r N (6 O (6 N O U 0 C7 Q N M V APPENDIX B EXISTING LAND USE MAP Stor~it T~Y'~uer L'tiliry Report City of H«s7ings WSBProjeet ~'o. 178~t 01 N W~ E 5 Golf Course ~ Commercial/Office Exempt ~ Industrial Low Density Residential ~ Public/Institutional Medium Density Residential ~ Agricultural L ~ ~-~-- High Density Residential ~ Open Space/Vacant Manufactured Housing APPENDIX C STORM WATER RUNOFF CALCULATIONS Stor~it T~Y'~uer L'tiliry Report City of H«s7ings WSBProjeet ~'o. 178~t 01 0 N N O N 0 ~~ _V U O N~ I.L L ++ ca 0 ca L 0 ca 0 ++ U ~ (~ V w O N ~ y `-' O N ~ ~ O (O ~ ~ ~ ~ 'a j ~ N ~~ V ~ ~ ~ ~ ~ ~ ~ O O O ~ a ~ w ~i a~ w N o ~ ~ ~ 3 ~ ~~ M ~ ~ O O ~ O ~ ~ ~ ~ O M O ~ N O O N ~ Q J ~. N M ~ ~ rn ~ ~ ~ ao ~ ~ O ~ L W L O 7 v ~ O~ y~ ~ M M ~ ~ ~ O M M ~ o0 O (O O M ~ O O O O O O i N I O ~ M N M O o0 00 00 O O 00 O ~ Q ~ ~ N N ~ N ~ O ~ °'a ~~~ ~ N +; c °' L~ ~ ~ M o 0 0 }, Q O O N O ~ ~ ~ M M M O M O O O w E N ~ ~, as ~ f C cC N 00 ~ ~ O ~ ~ M ~ I~ N O ~ O O M ~ M ~ O ~ V ~ M N N N ~ O O ~ Na w F ~ ~ ~ a ~ ~ ~~ ~ N ~ ~ ~ ~ N N T O = U ~ _ ~ ~ U ~ ~ ~ . -~ N ~ ~ 0 J ~ ~= (n ~ ~ ~ cn Q ~ ~ ~ ~ ~ ~ ~ ~ L CO ca L ~ O ~ N ~ E N U c0 L N _ CO 'L C C ~ Q O (n ~ ~' J U ~ ,~ ~ W ~ ~ 2 ~ U d C~ O Q iii 0 V f~ U w O O 7 U N APPENDIX D DRAFT STORM WATER UTILITY ORDINANCE Stor~it T~Y'~uer L'tiliry Report City of H«s7ings WSBProjeet ~'o. 178~t 01 51.10 Storm Water Utility (A) Statutory Authority: Minnesota Statute, Section 444.075 authorizes cities to impose just and equitable charges for the use and availability of storm sewer facilities. By this section the City elects to exercise such authority, establishing a municipal storm water utility. (8) Purpose: It is the intent of this article to establish a storm water utility to collect charges to finance costs associated with the operation and maintenance of the City's storm sewer system and implementation of storm water management programs, and storm water improvements. (C) Land Use: For the purpose of the storm water utility, land use categories are defined as follows: (1) Low Density Residential: Detached single family dwellings less than five acres in size. For the purposes of calculating storm water utility fees, all low density residential units are assumed to be 1 /3 acre in size. (2) Medium Density Residential: Lots containing multiple dwelling units such as duplexes, town houses, quad homes, and associated common open space that is privately owned. For the purposes of calculating storm water utility fees, all medium density residential units are assumed to be 1 /6 acre in size. (3) High Density Residential: Multiple dwelling units such as apartment complexes and senior housing, which are comprised of multiple levels of individual dwellings. (4) Manufactured Housing: Manufactured and mobile homes that are part of a common manufactured home park. (5) Commercial: Properties that contain retail sales, offices, professional services, hotels or motels and private recreational facilities operated for profit such as theaters and bowling alleys, (6) Industrial: Properties used for general contracting, manufacturing, warehousing, goods movement facilities, communications, utilities, and wholesale trade. (7) Public/Institutional: Schools, religious institutions, churches, state and federal government facilities, and Dakota County government offices and library. (8) Golf Course: Public and private golf courses (9) Agricultural: Undeveloped land which is used primarily for agricultural purposes and may include a homestead or other structures. (10) Open Space/Vacant: Undeveloped land that is used for non-agricultural purposes, such as cemeteries and vacant lots with no existing structures. (D) Rate Structure: The charges imposed as a part of this storm water utility shall be derived from parcels net acreage and residential equivalency factor (REF). The REF is defined as the ratio of runoff volume generated by one acre of land to the runoff volume generated by one acre of low density residential land. The residential equivalency factors for each land use established as part of this storm water utility shall be as follows: Land Use REF Low Densit Residential 1.0 Medium Density Residential 1.7 High Density Residential 2.0 Manufactured Housing 1.1 Commercial/Office 2.5 Industrial 1.9 Public/Institutional 1.1 Golf Course 0.5 Open Space/Vacant 0.3 Agricultural 1.0/parcel (1) All storm water utility fees shall be calculated based on the following formula: (REF)(Base Rate as established by the City Council) =Rate per Acre (2) Low Density Residential and Medium Density Residential parcels shall be charged on a per unit basis with respect to the average lot sizes described above. Agricultural parcels shall be charged 1.0 REF regardless of parcel size. All other land uses shall be charged on a per acre basis. (3) The quarterly base rate shall be established by City Council and amended by Council annually as deemed necessary. (4) Exemptions: The following land uses are exempt from the storm water utility fee: • Public rights-of way • Delineated wetlands, lakes, ponds and rivers • Land outside of the city • Other properties as deemed appropriate by the City Council (E) Billing, Payment and Penalty: These charges shall be included on the utility accounts of each property and are payable in accordance with the provision for filing and payment of municipal utility bills. Penalties for late payment or non-payment of billings for charges shall be the same as those applicable for municipal utility billings. (F) Rate Appeal: Property owners may appeal their storm water utility fee by providing data demonstrating that the actual storm water runoff volume from their site is substantially different from that of the assigned Land Uses. These appeals shall be made to the City Administrator who may recommend adjustments to individual parcels based on the information provided to the City Council for consideration. No adjustments to the utility fee shall be made retroactive. (G) Credits: Properties of two acres in size or greater may receive a 50% credit on their storm water utility charge by installing and maintaining storm water runoff control features that retain 100% of the property's runoff from a 10 year storm event, defined as a 4.1 inch rainfall. The City Administrator shall determine whether a storm water runoff control feature meets the credit criteria and is being properly maintained. Failure to properly maintain a storm water control feature may result in loss of the credit. APPENDIX E STORM WATER RATE APPEAL FORM Stor~it T~Y'~uer L'tiliry Report City of H«s7ings WSBProjeet ~'o. 178~t 01 Storm Water Utility Appeal Form City of Hastings Any property owner appealing their Storm Water Utility Fee must complete this form and submit it to the City Engineer. A determination will be made to see if the actual storm water runoff volume from the site is substantially different from the calculations for the land use of the parcel within the Storm Water Utility Report. (Please attach a drawing of the parcel and a location of all buildings and impervious areas.) 1) Applicant Name Address 2) Lot Size (acres) 3) Pervious Area (acres) (Lawns, greenspace, etc.) 4) Impervious Area (acres) (Buildings, Driveways, etc.) 5) Land Use Classification (The City's Land Use can be obtained at City Hall.) Date of submitted form All appeals will be reviewed and a determination will be made and returned to the property owner within 3 weeks of the time the City received the Appeal Form. Completed forms can be submitted to: Nick Egger, P.E. City Engineer 1225 Progress Drive Hastings, MN 55033 f _ ~01 "Sd-01 rirhnm DocviStonn iPater L%hhh-_-fyyea] Form. doc APPENDIX F EDUCATIONAL MATERIAL Stor~it T~Y'~uer L'tiliry Report City of H«s7ings WSBProjeet ~'o. 178~t 01 Storm Water Utility Fee What is a Storm Water Utility Fee? A storm water utility is a service similar to the water and sanitary sewer utilities and is charged to existing landowners. Similar to a sanitary sewer utility, the fee is based on the amount each property uses. In the case of storm water, it is based on the amount of storm water runoff generated by each property. For example, a parking lot creates more storm water runoff than a grassy area the same size; therefore, the parking lot owner would pay a higher rate. In this way, the landowners in the City will pay for the management of storm water in proportion to the amount of storm water runoffthey contribute to the system. M ~' Why is a Storm Water Utility needed? No matter where you live in Hastings, when it rains, storm water runs off of sidewalks, homes, driveways, and lawns and into a storm sewer system. The City's storm sewer system collects rain runoff in streets or ditches and then directs the water into storm sewer pipes, ponds, or drainageways. These systems eventually discharge the water to ponds, wetlands, and the Mississippi River. The system of streets, catch basins, and storm ponds have been built and need to be maintained to control storm water runoffto: Protect people Protect property Reduce insurance risks Improve property values Protect water quality To control, collect, and treat storm water, there is a cost. The money generated by the utility will be used to conduct routine maintenance activities on the existing system to keep them functional and to maintain flood protection and water quality benefits. These activities include but are not limited to the following: Street sweeping Storm water pond and infiltration Erosion and sedimentation control inspections basin cleaning and maintenance Storm sewer system inspections and repairs Drainage ditch cleaning Storm sewer pipe replacement In addition to financing maintenance and operation costs, a portion of the revenue generated by the storm water utility will be utilized by the City to meet the requirements of the Minnesota Pollution Control Agency (MCPA) and other outside agencies related to storm water management. Under these requirements the City must implement a variety of programs, permits, and planning activities to address and promote storm water pollution prevention. How much will I pay? The quarterly fee billed to landowners will be based on the land use of the property. The land use provides an estimation of the amount of storm water runoff a property will generate based on the typical impervious and pervious area ratio for that specific land use. The estimated storm water runoff volume is proportional to the fee that will be charged. The anticipated quarterly rates for 2010 are: Existin Land Use Residential Equivalency Factor (REF) Quarterl Rate Annual Rate Low Density Residential 1.0 $10.96 per lot $43.84 per lot Medium Density Residential 1.2 $6.58 per lot $26.30 per lot Hi h Densit Residential 1.4 $46.03 er acre $184.13 er acre Manufactured Housing 1.1 $36.17 per acre $144.67 per acre Commercial/Office 1.9 $62.47 per acre $249.89 per acre Industrial 1.6 $52.61 per acre $210.43 per acre Public/Institutional 1.1 $36.17 per acre $144.67 per acre Golf Course 0.5 $4.11 per acre $16.44 per acre Open Space/Vacant 0.5 $10.96 per lot $43.84 per lot A ricultural 0.5 $10.96 er lot $43.84 er lot When will this fee begin? The City of Hastings anticipates to implement this fee in 2010 to assist the City in maintaining aging infrastructure, respond to increasing regulations, and to protect downstream water resources. The storm water utility fee is proposed to be added to your water and sewer bill. A public informational meeting will be held on November 12, 2009, from 3:30 pm to 6:30 pm, at City Hall to address questions and concerns. If you would like more information, please contact the City Public Works Department.