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5.5. SR 01-18-1994 rei --'\j ( ); ffi~ ITEM 5.5. TO: MAYOR AND CITY COUNCIL FROM: PATRICK KLAERS, CIT~~MINISTRATOR JANUARY 12, 1994 }~~ DATE: SUBJECT: STORM SEWER FEES Storm drainage has been an issue of significant concern for the City Council throughout 1993. The guidelines for an overall plan was first discussed at a 4/24/93 worksession in which the City Council indicated that the City Engineer was moving in the right direction in formulating a city-wide comprehensive plan and that he should continue his efforts. Also, a motion was approved directing staff to evaluate financial options for implementing a storm drainage system throughout the entire city. 1993 was somewhat of wet year, which caused the City to pay even more attention to storm drainage issues. e The Comprehensive Storm Drainage Plan was presented in a preliminary fashion at the 9/13/93 meeting. At this time, the City Council found the Plan to be acceptable and discussed funding options. Also at this time, the City Council authorized staff to continue working on the cost, timing, and funding, of the major storm drainage problems in the City including the Deerfield III, SChultz/Deschenes, and Main/Evans Avenue areas. At the 10/25/93 City Council meeting, a number of storm drainage issues were again discussed by the Council including a review of the bid for the Deerfield III project. At this 10/25/93 meeting, the Council directed staff to send a memo to Elk River Utilities informing them of the possibility of having them do the billing for storm sewer fees. This letter was sent by the Finance Director to the Utilities Superintendent. Financing mechanisms for a comprehensive storm drainage program included an impact fee against development projects and a city-wide fee that would be collected through the Municipal Utilities from all, or most, property owners. e Most recently, on 1/8/94, the City Council held a worksession on a number of engineering related issues. Included in this worksession was an update on the Comprehensive Storm Drainage Plan. At this meeting, the costs for the three most urgently needed storm drainage improvements projects were reviewed as well as the current negative status of the storm sewer fund. The City Council directed staff to continue to work on issues to move forward in 1994 on the Deerfield III and Schultz/Deschenes projects. An additional funding method, a city-wide levy for storm drainage problems, was reviewed as an option by the City Council. Staff was directed to provide more information on the ramifications of such a city-wide levy. Additionally, this storm drainage funding issue was directed to P.O. Box 490 · 13065 Orono Parkway · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425 e e e be put on the 1/18/94 City Council agenda. In this regard, the City Council indicated its intent to formally pass a motion that would request the Elk River Municipal Utilities assistance and participation in the establishment and billing of a city-wide storm drainage fee. The City Council will decide the actual billing amount or fee based on land utilization. This issue is expected to reach the City Council in February, 1994 for a final decision on the rates for various developed and undeveloped parcels of property in the City. a motion working utility It is recommended that the City Council approve requesting the Elk River Municipal Utilities to begin with the City in the anticipation of the storm drainage fee being first sent out in the July, 1994 bills.