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9.3. SR 02-19-2019 ��i Eof lk — - Request for Action River To Item Number Mayor and City Council 9.3 Agenda Section Meeting Date Prepared by Work Session February 19, 2019 Brandon Wisner, Stormwater Coordinator Item Description Reviewed by Surface Water Management Impact Fee Justin Femrite, P.E.,Public Works Director Reviewed by Action Requested Provide staff with direction regarding the city Surface Water Management Impact Fee. Background/Discussion This item is a follow up from December 3, 2018,when the Council was approached by the owners of ERX regarding the stormwater impact fee they had to pay at time of platting their property. The fee is collected at time of platting per Resolution 94-110 since its adoption in 1994. The resolution references the fee and an annual increase of 3%, but does not define the system "impact" or exemptions for uniqueness of individual plats. The revenue from the stormwater "impact fee" along with stormwater "utility fee" make up the total annual revenue into the Stormwater Fund as shown here: 2015 2016 2017 2018 SW Utility $330,980 $449,510 $457,316 $468,000 SW Impact $ 22,440 $ 25,536 $ 51,344 $ 37,312 Staff has reviewed the purpose and intent of each fee. The following are options to consider: 1. No change to impact or utility fees. 2. Define conditions to allow for exemptions for plats that neither construct public drainage systems nor have post development offsite runoff. Adjust the utility fee to make up an expected reduction in impact fee revenue. 3. Remove the impact fee and adjust the utility fee to make up the annual revenue difference (expected 10%increase to utility fee in 2020 which includes our expected 5% annual increase) Financial Impact NA Attachments ■ Resolution 94-110—Surface Water Management Impact Fee ■ 2019 Fee Schedule (Surface Water Management Impact Fee portion) The Elk River Vision A avelcoming community with revolutionary and spirited resourcefulness, exceptional P U W E H E o s r service, and community engagement that encourages and inspires prosperity INATUR e RESOLUTION 94- 110 A RESOLUTION OF THE CITY OF ELK RIVER A RESOLUTION ESTABLISHING THE SURFACE WATER MANAGEMENT IMPACT FEE RATES WHEREAS, the City of Elk River has a need for surface water management throughout the community; and WHEREAS, the City of Elk River has completed a surface water management study; and WHEREAS, the surface water management study has assisted the City in determining which drainage improvements are necessary to help eliminate the most urgent surface water management problems; and e WHEREAS, the City has determined to fund the surface water management improvements through a variety of funding sources including a Surface Water Management Impact Fee; and WHEREAS, the City has determined that this Surface Water Management Impact Fee should be collected from the property owner at the time of platting, or in the case of existing lots, at the time of issuance of a building permit. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Elk River Minnesota: 1. The Surface Water Management Impact Fee for all rural non~city sewer and water) single-family residential lots shall be $60.00 in 1994. On January 1 of each succeeding year, the rate shall increase three percent (3%). 2. The Surface Water Management Impact Fee for all urban city sewer and water) single-family residential lots shall be $120 in 1994. On January 1 of each succeeding year, the rate shall increase by three percent (3%). e 3. The Surface Water Management Impact Fee for all non- single-family residential property shall be $720 per acre work material and labor POOL 45 plus state surchargeAboveGround 75 plus state surchargeInGround RE-ROOF 75 plus state surchargeResidential 2 per square foot for valuation for permitCommercial/Industrial fee plus state surcharge, minimum $75 RENTALDWELLING Fees listed under Fire section RESIDENTIAL FIXTURE/APPLIANCE REPAIRORREPLACE 15 minimum or 5% of the cost, whichever is greater 75 plus state surchargeRE-SIDING (Residential) SANITARYSEWERUSERFEE 4.75ChargePer1,000 Gallons 11.00MinimumCharge 18.90ApartmentUnitCharge 24.85HouseUnitFlatCharge SEPTICINSTALLATION & REPAIRPERMIT $130 SEWERAVAILABILITYCHARGE (SAC) 5,200 per unit SEWER & WATERHOOKUP/REPAIRPERMIT 150 commercial plus $2,000 bond in favor of the cityStormorSanitary 65 residential plus $2,000 bond in favor of the city SIGN/ZONINGPERMITS 30PermanentSign (separate building permit and fee may apply) 40Temporary 100SITEPLANREVIEWAPPLICATION 500EscrowforConsulting/Engineering/Staff Services STAFFSERVICES 60 an hour STREET/ RIGHT-OF-WAYDISRUPTIONPERMIT $100 plus ($5,000 letter of credit or bond in favor of the city or equivalent) cable, phone, gas, electric, etc.) SUBDIVISIONEXEMPTIONS 100 100EscrowforConsulting/Engineering/Staff Services 119/residential lot (rural) SURFACEWATERMANAGEMENTIMPACTFEE 240/residential lot (urban) 3% annual increase per resolution 94-110) 1,366/acre (multifamily, commercial, and industrial) 7