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8.3. SR 12-15-2014 City of Elk Request for Action River To Item Number Mayor and City Council 8.3 Agenda Section Meeting Date Prepared by General Business December 15, 2014 Justin Femrite, P.E., City Engineer Item Description Reviewed by Stormwater Utility Fee Program Implementation Tim Simon, Finance Director Reviewed by Cal Portner, City Administrator Action Requested Adopt,by motion,the following items: 1. Ordinance to Establish a Stormwater Utility 2. Resolution authorizing the transfer of funds to the new Stormwater Enterprise Fund 3. Ordinance amending the 2015 Master Fee Schedule Background/Discussion The approval of the items listed above will mark the culmination of a three-year review of the funding of our stormwater program. At the November 17, 2014, meeting, staff gave an overview of the proposed Stormwater Utility Fee Program and reviewed the public input that had been received. At the meeting Council directed staff to proceed with the preparation of necessary ordinances for establishment of the Stormwater Utility. The first ordinance listed detailed amendments to the City Code to establish the storm water utility. The resolution then authorizes the creation of the Stormwater Utility Enterprise Fund and the transfer of all money from the existing Surface Water Management Fund into the new Enterprise Fund. The second ordinance amends the already approved 2015 Master Fee Schedule. This amendment formally sets the 2015 rate for the stormwater utility fee. Financial Impact With the stormwater utility fee set at the rates listed in the ordinance,we will collect estimated annual revenues of$418,000 for the stormwater program. The stormwater fee is expected to start showing up on customer's bills in February or March of 2015. Attachments • November 17, 2015 Stormwater program staff report and presentation • Ordinance to Establish a Stormwater Utility • Resolution authorizing the transfer of funds to the new Stormwater enterprise fund • Ordinance amending the 2015 Master Fee Schedule P a w E A E U s r NaA f RE] /i Elk Request for Action Fiver To Item Number Mayor and City Council 9.2 Agenda Section Meeting Date Prepared by Work Session November 17, 2014 Justin Femrite, P.E., City Engineer Item Description Reviewed by Stormwater Utility Fee Program Cal Portner, City Administrator Reviewed by Action Requested Provide direction on draft ordinances and Stormwater Program funding mechanism. Background/Discussion At the meeting, staff will review a presentation detailing the framework of the proposed Stormwater Fee program. Topics to be reviewed include the following: 1. Public Survey feedback 2. 2012 Fee Report 3. Draft ordinances 4. Estimated stormwater fee rates 5. Comparison of fees charged by other cities Financial Impact None Attachments ■ None PVawEAEU 0 mA/� uR Elk River Stormwater Program Funding Q� The goal of federal Clean Water Act is to ,�e�• 4 ensure reliable and safe water for Americans. Elk River residents and City Hall are in this together. Please provide any other feedback you may have on our program including the need for additional public education, reporting of stormwater problems in your area, or thoughts for efforts above mandated requirements for cleaner stormwater. Answered:8 Skipped: 12 # Responses Date 1 Just as in our real home finance,when larger projects are necessitated we have but one option,pull from the 10/21/2014 6:52 AM j income source and cut back on some want.So it should be with government.Please do not add a stormwater utility fee onto any billing.Please do not increase the property tax.I ask that you find some want within the budget I to fund the need.Historically a tax levy or a fee never goes away.The money gets added to budgets and budgets are never reduced. i 2 People need to watch what goes into the water sources to begin with.To many people rake into the street and ! 9/27/2014 7:59 AM just let everything go wherever. 3 i Mother Nature decides on how much run off my property contributes to the storm sewer system.Same thing for 9/26/2014 7:20 PM business owners.They can't control how much comes off their properties as well.I feel a service fee makes more sense on this subject,that way your not singling big property owners out for more money when they can't control how much run off they have.Flat fee for everyone in the WHOLE city.That way no one can complain. 4 1 would like to see much more information on exactly what the MPCA is mandating that cities do.As of right now,1 9/26/2014 6:52 PM don't think this information is anywhere in a user-friendly,readable format.We might not be able to do anything about these mandates currently,but the citizens should at least be able to see whether an unelected body of I bureaucrats is asking something completely onerous of us. 5 We moved to Elk River a year ago and I am surprised how large the drains in the street are...so that means larger 9/26/2014 1:02 PM i pieces of debris are getting into the drain.We live in the Energy House III and called once in the spring to have the City come out to help us clean out the drain that dumps into the pond.It is at such a steep angle that it makes it almost impossible for the homeowner to do it themselves.But it was clogged with large plastic bottles,large balls,and other large pieces of garbage.Not to mention it was covered with trees and brush.I see that your budget is low for maintaining these,but it was terrible.Not to mention the pond that my husband bought a net for and cleaned about 3 large garbage bags of trash out of...we do have a lot of wildlife that lives in and around this pond and it makes me sad that they live in the garbage.Not sure if maybe the drain covers can be made smaller (the bars are so far apart-lots of kids in our neighborhood play ball,etc around it)...thanks for listening. 6 ! Well another way for the city to nickle and dime us.we're still paying the road work from 2007 and then we get hit 9/22/2014 11:10 AM with the road fee,now just add another fee.lf the city would not buy property that sits for years or is not getting tax money at all back(ex.golf course-forgiving property owners who don't pay taxes for years),there would to be money to help with this cost.instead of doing a survey online way not go out to the people in the city and really talk to them.You want real answers then go into the neighborhoods and get real input and not just from a few people who do have computers and do the survey.. 7 1 see a lot of waste in the city this could have been handled within the current levy or a combination of current 9/1912014 12:23 PM levy and a small increase the options are not mutually exclusive.Education on keeping the runoff cleaner or incentives for rain gardens or onside treatment would be better received.We live in a high tax low service neighbor hood with no city park and the last to be cleared out in the winter,if there was not an officer in the neighborhood I do not think we would even see that service,the raise in fees or taxes is semantics,it cost too much to live here for the service we receive. 1 / 2 Elk River8tormwater Program Funding o Use existing levy funds,STOP INCREASING DENSITY,live within your means(|have m).Provide detailed 9/18/2014 5:23 pm | administrative and wage figures for administering ANY such pmnmm.w*vmo,new o,m»wmwxo. | — — -- /— ---'---- --- '------ --'---- __� --' 2 /2 4 I O f1 I 4J f LU 1 W 0 00 No • E 0 o V o �, ' 00 O u O I •4-, O O 4J u -v to W m •— �, > cn 3 � � 4 E Z o •� •- O Q (1) C: C) 4J 4-) cry N V) CL LL • • • • L .O X ,O • 0 0 (A N L p 4J 0 VA z d -� O 4 O cn v� O C: L. 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That Chapter 78 of the City of Elk River Code of Ordinances is amended to add new Article V, Stormwater Utility, as follows: Article V. Stormwater Utility Division 1 Authority, Purpose and Administration Sec. 78-401 Stormwater Utility Established There is hereby established a public utility to be known as the Stormwater Utility for the City of Elk River. The Stormwater Utility shall be operated as a public utility pursuant to the authority of Minn. Stat. � 444.075. Stormwater Utility revenues shall be subject to the provisions of this Section and Minn. Stat. § 444.075. Sec. 78-402 Purpose The purpose of this ordinance is to provide a funding mechanism for the following services: a) The administration,planning, analysis,installation, operation, maintenance, and replacement of public drainage systems. b) The administration,planning,implementation, construction, and maintenance of stormwater Best Management Practices (BMP's) to reduce the introduction of sediment and other pollutants into local water resources. c) Other education, engineering,inspection,monitoring, testing, and enforcement activities as necessary to maintain compliance with local, state, and federal stormwater requirements. d) Activities necessary to maintain compliance with the National Pollutant Discharge Elimination System (NPDES),Municipal Separate Storm Sewer System (MS4) Permit requirements established by the U.S. Environmental Protection Agency,including preparation, NATURE implementation,and management of a Stormwater Pollution Prevention Plan (SWPPP). Sec. 78-403 Administration The Stormwater Utility shall be part of the Community Operations and Development Department and shall be administered by the Community Operations and Development Director or their designee. This ordinance shall apply to the entire City of Elk River. Sec. 78-404 Stormwater Utility Fund There is hereby created a Stormwater Utility Fund into which all fees,when collected, shall be placed. Such monies shall be first used to pay normal, reasonable, and current costs of operating and maintain the city stormwater system and facilities. Division 2 Stormwater Utility Fee Sec. 78-411 Establishment of Stormwater Utility Fee There shall be collected from every property in the city a Stormwater Utility Fee. Stormwater Utility Fees shall be established by ordinance and shall be collected monthly. Fees shall be based upon the operations of the Stormwater Utility,including an accounting of all monies received and disbursed,together with a working budget estimate of the needs of the utility. Sec. 78-412 Single Family,Duplex, and Townhome Residential Uses The Stormwater Utility Fee for properties classified as single family, duplex, and townhome residential uses shall be a fixed monthly amount established each year by ordinance. The Stormwater Utility Fee rate shall consider the impact on the public drainage system for properties within urban utility service area and properties outside the urban utility service area relating to the costs associated with the management of the entire public drainage system. Sec. 78-413 All Other Uses All uses, other than single family, duplex, and townhome residential uses, shall pay a Stormwater Utility Fee based on the acreage of impervious surface on the property,as determined by the city through digitized mapping and/or site plan reviews. The acreage for any properties with impervious surfaces, shall be rounded to the nearest tenth of an acre and not be less than one tenth of an acre. The Stormwater Utility Fee per acre of impervious surface shall be established each year by ordinance.The basis for the fee shall be seven times the amount of the urban residential fee reflecting the average residential property consisting of 1/7t1 of an acre of impervious area. 2 Sec. 78-414 Stormwater Utility Fee Exemptions The following land uses are exempt from stormwater utility fees: a. Public Rights-of-Way and parks b. Vacant lands with no impervious surface c. Railroad Rights-of-Way Sec. 78-415 Stormwater Utility Adjustments a) Impervious Surface Area Adjustments. The Community Operations and Development Director, or designee, may adjust the impervious surface acreage for parcels of land (other than single family, duplex, and townhome residential parcels) based on a demonstration that the impervious coverage of such parcel is substantially different than the amount previously calculated. Supporting information, including maps and measurements to justify an adjustment, shall be supplied by the property owner.Administrative adjustments for impervious surface calculation differences, shall be retroactive to the month said deviation is brought to the attention of the city. b) Other adjustments may be applied to parcels of land (other than single family, duplex, and townhome residential parcels) which demonstrate full control and treatment of stormwater on the property. Site information,BMP maintenance records, and hydrologic data must be supplied by the property owner(s) to demonstrate that a fee adjustment is warranted. The maximum reduction for properties demonstrating a property meets all discharge requirements of the current city MS4 permit,without overflows to a public system, shall be up to 30 percent. Sec. 78-416 Appeal of Stormwater Utility Fee If a property owner or person responsible for paying a Stormwater Utility Fee believes that a particular assigned fee is incorrect, such person may request a recalculation. The City Council shall review and approve recalculations following any appeal and their decision shall be final. Sec. 78-417 Payment of Fees Statements for Stormwater Utility Fees shall be billed on a monthly basis. All fees shall be subject to established procedures for determining and collecting customer charges. Sec. 78-418 Late Payment Penalty Each Stormwater Utility Fee billing not paid when due shall incur a penalty charge of 10 percent of the amount past due. 3 Sec. 78-419 Establishment of Tax Lien Any past due Stormwater Utility Fees will be certified to the County Auditor for collection with real estate taxes against the property served by the utility established in this ordinance for collection as other taxes are collected in the following year pursuant to Minn. Stat. � 444.075, subd. 3, and the City Code of Ordinances. In addition,the city may have the right to bring a civil action or take other legal remedies to collect unpaid fees. Section 2. That this Ordinance shall take effect upon adoption and be published as provided by law. Adopted this 15"'day of December, 2014, by the City Council of the City of Elk River,Minnesota. John J. Dietz Mayor ATTEST: Tina Allard City Clerk 4 City of Elk RESOLUTION 14 - River A RESOLUTION OF THE CITY OF ELK RIVER A RESOLUTION AUTHORIZING A TRANSFER FROM THE SURFACE WATER MANAGEMENT FUND TO THE STORMWATER UTILITY FUND WHEREAS, The City Council approved establishing the Stormwater Utility Fund on January 1, 2015, and, WHEREAS, The City Council has reviewed the request and determined it to be a sound financial practice; and, WHEREAS, It has been determined that any remaining funds at year-end should be transferred out of the Surface Water Management Fund to provide initial funding for the Stormwater Utility Fund; NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Elk River makes the following transfer of any remaining funds from the Surface Water Management Fund to the Stormwater Utility Fund in 2015: Passed and adopted this 15"' day of December 2014. John J. Dietz,Mayor ATTEST: Tina Allard, City Clerk r n w E R E U ® T NnATUREI WA City of Elk -�-� River Ordinance 14 - An Ordinance Amending the 2015 Master Fee Schedule to include Stormwater Utility Fees for the City of Elk River, Minnesota, City Code The City Council of the City of Elk River does hereby ordain as follows: SECTION 1. That the 2015 Master Fee Schedule of the City of Elk River Code of Ordinances shall be amended to add the following fees: Stormwater Utility Fee The Stormwater Utility Fee for properties used for single family, duplex, and townhome residential uses with public sewer and/or public water service is - $3.00 per month per residential unit. The Stormwater Utility Fee for all other properties used for single family, duplex, and townhome residential uses is - $2.00 per month per residential unit. The Stormwater Utility Fee for all other properties in the city is $21.00 per impervious acre per month. SECTION 2. That this ordinance shall take effect December 15, 2014, and be published as provided by law. Monthly billings are to begin as soon as practical, and not later than March of 2015. Passed and adopted by the City Council of the City of Elk River this 15th day of December, 2014. John J. Dietz,Mayor ATTEST: Tina Allard, City Clerk P 0 W I R 1 9 0 ATUR Last Updated March 2014 INI