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4.10. SR 10-25-1993 e 1m Enere)' Piuii Dril'e SL PaIIl, MX 551118.5202 612.64l-4389 e Far. 612-644.9446 . Sbelard Mill)', Ste.Ill'.l Minnraptllis, alN ~441-6451 612.M6-04~2 FiII: 612-M4-6~98 ITEM 4. 10 . October 21, 1993 File: 230-161-75 The Honorable Mayor and City Council City of Elk River 13065 Orono Parkway Elk River, MN 55330 RE: Storm Sewer Assessment Rates Dear Council Members: As you are aware, we are currently working on developing a stormwater utility fee which will generate monies to be utilized for storm sewer improvements by providing for a monthly or quarterly charge to developed and possibly undeveloped properties for these purposes. As the City Council is aware, the only other funding mechanism available for these types of improvements would be assessments to the benefited properties. Relative to the improvements outlined in the Comprehensive Drainage Plan, staff would like the City Council to begin consideration of the appropriateness of a potential assessment fee on an area basis for developing properties. As an example, the Elk Park Center could be charged on an area basis for the property to be developed and these funds would be used to offset storm drainage improvements needed offsite, namely the outlet from the regional pond on the east side of TH 169. This would be very similar in nature to the current park dedication fee. Staff believes it would be appropriate for the City Council to set a policy that new developments pay for the entire cost of all storm sewer improvements internal to their projects, and then be assessed a fee to help offset the cost of storm sewer improvements needed outside of the developed area. The question is, at what level should these rates be set? Certainly there should be some weighting of the rates. Commercial and industrial properties, which typically generate higher amounts of runoff, should pay more than residential property, which would be at the lower end of the intensity scale. Other properties which may fall in the middle may be multi- family, apartments, churches and schools. At this point in time, staff would like to get some feedback from the City Council as to your opinion of this type of approach. If the consensus is positive, staff would do further work and come back later with recommended rates for this type of fee. e The Honorable Mayor and City Counci October 21, 1993 Page Two If you have any questions, I will be in attendance at Monday evening's City Council meeting. Sincerely, MSA, CONSULTING ENGINEERS ~~~ Terry J. Maurer, P.E. TJM:ds 161-2106.0CT e e