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HomeMy WebLinkAbout6.C.1. Storm Water Utility Rates Ordinance wtih Multipliers, Ord. No. 920 Consent Business 6. C. 1. SHAKOPEE TO: Mayor and City Council FROM: Joe Swentek, Engineer DATE: 12/01/2015 SUBJECT: Storm Water Utility Rates Ordinance with Multipliers, Ord. No. 920 (E) Action Sought Approve Ordinance No. 920 revising Section 53.03, Subdivision (B) of the City of Shakopee Code of Ordinances (formerly Section 3.42, Subdivision 3), which addresses the definition of Residential Equivalent Factor (REF) values for all properties in the City of Shakopee. Background The City Council initially discussed this topic at its July 21, 2015 meeting where it accepted the Surface Water Utility Justification Report proposing to change the utility rate and REF values. The City of Shakopee maintains a Storm Water Drainage Utility fund to help pay for its storm water program. Customers are currently charged according to the amount of impervious surface on their property, which is used to determine the REF, and the size of their property. A REF is defined as the ratio of the average volume of runoff generated by one (1) acre of a given land use to the average volume of runoff generated by one (1) acre of typical single family residential land. A property's storm water drainage fee is determined by multiplying its REF by its acreage and then multiplying this by the storm water drainage rate. This system was implemented in 1985 and is based on a more regional water quality and flood control approach, which translates to a property's use of a regional system being based predominantly on its amount of impervious surface. Since then, several changes in storm water management requirements have taken place and it is our belief the City's rates should change to reflect these newer requirements. The revised REFs will take into account most subdivisions provide water quality and rate control on site, and most new subdivisions additionally provide infiltration on site. This method relies less on impervious surface because our rate control requirement is based on area, and it sets forth credits for providing water quality and infiltration on site. The new approach will adequately address a site's actual downstream impact in terms of pollutant loads and runoff volume, both of which are primary concerns of our storm water requirements. Approval of this ordinance will result in no impact to the REFs of residential properties and will for the most part result in a decrease of REFs for commercial/industrial properties. However, properties in older subdivisions without water quality and infiltration may see an increase in REFs. Unfunded storm water quality mandates from the Federal and State levels will eventually require the City of Shakopee to retrofit water quality treatment and perhaps infiltration into these older areas. The potential significant expenditures of the retrofitting projects justify the higher REFs. Customers will be notified of the change via an informational flyer placed in the monthly utility bill mailings. Recommendation Approve Ordinance No. 920, revising Section 53.03, Subdivision (B) of the City of Shakopee Code of Ordinances, which addresses the definition of Residential Equivalent Factor (REF) values for all properties in the City of Shakopee. Budget Impact Approval of Ordinance No. 920 will have no budget impact to the Surface Water fund. It will have an slight increase to residential properties and a slight decrease to some commercial properties. Relationship to Vision This supports Goal E: Deliver effective and efficient public services by a staff of well-trained, caring, and professional employees. Requested Action Approve Ordinance No. 920 revising Section 53.03, Subdivision (B) of the City of Shakopee Code of Ordinances (formerly Section 3.42, Subdivision 3), which addresses the definition of Residential Equivalent Factor (REF) values for all properties in the City of Shakopee. Attachments: Ord. No. 920 ORDINANCE NO. 920, FOURTH SERIES AN ORDINANCE AMENDING SECTION 53.03 OF THE CITY OF SHAKOPEE CODE OF ORDINANCES PERTAINING TO STORMWATER DRAINAGE FEES Whereas, the City Council at its July 21, 2015 meeting accepted the Surface Water Utility Justification Report to change the utility rate and multipliers for 2016; and, Whereas, a new ordinance to change the REF values is required; and, Whereas, Section 53.03, Subdivision (B) of the City of Shakopee Code of Ordinances authorizes the City of Shakopee to establish Residential Equivalency Factor (REF) values for various land uses. THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA ORDAINS: Section 1. Section 53.03, Subdivision (B) of the City of Shakopee Code of Ordinances is amended to read as follows: § 53.03 STORMWATER DRAINAGE FEES. (A) Storm water drainage fees for parcels of land shall be determined by multiplying the REF for a parcel's land use by the parcel's acreage and then multiplying the resulting product by the stormwater drainage rate. (B) The REF values for various land uses are as follows. REFs per Acre Impervious Category Water Quality Water Quality Provided Not Provided A: Less than 35% 1.0 1.0 Impervious Infiltration B: 35-60% Impervious 1.4 1.4 Provided C: Greater than 60% 1.7 1.7 Impervious A: Less than 35% 1 8 2.2 Impervious Infiltration Not B: 35-60% Impervious 2.6 3.2 Provided C: Greater than 60% 3.3 3.8 Impervious Section 2. Effective Date. This ordinance shall be in effect on January 1, 2016. Adopted in session of the City Council of the City of Shakopee, Minnesota held this day of , 2015. Mayor of the City of Shakopee ATTEST: City Clerk Published in the Shakopee Valley News on the day of , 2015.