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Home My WebLink About4.C.2. Approval of a Storm Water Utility Justification Study by WSB & Associates, Inc. Consent Business 4. C. 2. SHA KOPE f; TO: Mayor and City Council Mark McNeill, City Administrator FROM: Bruce Loney, Public Works Director DATE: 04/02/2013 SUBJECT: Approval of a Storm Water Utility Justification Study by WSB & Associates, Inc. (E) Action Sought Approve a motion authorizing the appropriate City Officials to execute an extension agreement with WSB & Associates, Inc. for a Storm Water Utility Justification Study. Background A Storm Water Utility was established by Ordinance No. 176 on August 8, 1985. Since that time, many changes have occurred in the storm water management area especially in the area of water quality and quantity. Staff has budgeted in the surface drainage account, funds to revisit the theory behind the rate structure and analyzed the rate with actual storm water needs. The attached proposal has three major tasks to be done in the 90 days from authorization of the proposal as follows: 1. Review the Existing Storm Water Utility 2. Define Activities to be Funded by the Utility 3. Finalize Fee Structure /Proposed Rates The Finance Director and I are supportive in moving forward with this proposal. Recommendation Approve a motion authorizing the appropriate City Officials to execute the Extension Agreement with WSB & Associates, Inc. for a Storm Water Utility Justification Study. Budget Impact This study will be funded from the Surface Drainage Fund and sufficient funds are available. 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 a motion authorizing the appropriate City Officials to execute the Extension Agreement with WSB & Associates, Inc. for a Storm Water Utility Justification Study. Attachments: Proposal -Storm Water Utility Justification WSB Engineering ■ Planning ■ Environmental ■ Construction 701 Xenia Avenue South Suite 300 Minneapolis, MN 55416 Tel: 763 - 541 -4800 Fax: 763 -541 -1700 March 26, 2013 Mr. Bruce Loney, PE Director of Public Works /City Engineer Public Works Department 500 Gorman Street Shakopee, MN 55379 Re: Proposal for a Storm Water Utility Justification Study City of Shakopee, MN Dear Mr. Loney: WSB & Associates, Inc. (WSB) is pleased to submit this proposal to complete a Storm Water Utility Fee Justification Report. Attached to this letter is Exhibit A — Scope of Work which . provides a description of the work to be completed. Compensation for services to complete the project will be in accordance with the hour estimates outlined in Exhibit B, and according to WSB's agreement for professional services with the City of Shakopee. Understanding Shakopee developed its existing rate structure in the 1980's. Since that time, storm water management has evolved to emphasize water quality as much as flood control. Additionally, the City established 0.1 and 0.3 cfs /acre rate control requirements in the late 2000's. This rate control policy eliminates some of the water quantity distinction between more and less impervious land uses. These changes warrant that the theory behind the rate be revisited and that the City re- aligns the rate with actual storm water needs. WSB Project Team • Bob Barth — Project Manager • Jacob Newhall, PE — Project Engineer • Ted Witkowski — Engineering Specialist • Bryan Pittman — GIS Specialist WSB proposes to submit a draft Utility Fee Justification report within 90 days of receiving notice to proceed and will work with the City of Shakopee to complete a document that best reflects the needs of the City. This letter proposal represents our understanding of the project scope. 1 O1Jd1. 3f.O J rou,r r,. a'YNOPA 1,>,i.•NOJMlJ.i'l1Y'.Mr xwrx+,rpn.. Mr. Bruce Loney, PE March 26, 2013 Page 2 The City of Shakopee agrees to reimburse WSB & Associates, Inc. for these services in accordance with Section IV of the Agreement for Professional Services. If this agreement meets your approval, please sign below and return one copy to our office. Thank you for your consideration. Sincerely, WSB & Associates, Inc. Ao r Bob Barth Senior Project Manager ACCEPTED BY: City Administrator Mayor Date A'. 013.N,IdiI,HMunf<wm «rl'g0Ph 1....Oi 61,0111uugir,uuw. EXHIBIT A SCOPE OF WORK Task 1— Review the Existing Storm Water Utility This task consists of reviewing the existing Storm Water Utility for the City of Shakopee. This review generally consists of the following activities: Review Policy and Parameters Used to Calculate Fee We will review the Storm Water Utility Drainage policy and how that policy translates into actual property charges. We will review the quality and application of parameters that actually determine a charge: acreage, land use, design rainfall event, impervious surface coverage, anticipated discharge rates, anticipated runoff volumes, etc. This task will include collection of background data used for the existing rate structure. Data may include existing and future land use mapping, aerial photography, City parcel records, GIS shapefiles, existing zoning and land use regulations, etc. Determine an Equitable Rate Structure We will review the financial contribution of each land use against its relative use or burden to the system under the current rates. Use or burden might differ for water quality, water quantity, and compliance (MS4) so a three tiered system may be justified. We will develop side by side comparisons of up to two new rate structures, in addition to the existing rate structure, for consideration by staff. A "test of reasonableness" will be provided for the recommended fee structure. This "test of reasonableness" will include a survey of how other Metro communities divide their utility rates among different land uses. This task culminates in a recommendation for a rate structure. Review Existing Ordinance The existing Storm Water Utility Ordinance will be reviewed and updated to reflect any modifications made to parameters and rate structures from previous activities. WSB will attend one Council work session and one City Council meeting to present the updated ordinance to the City Council for adoption if changes are needed. Task 2 — Define Activities to be Funded by the Utility As part of this task, City activities to be funded by storm water utility fees will be defined. This activity will attempt to quantify all storm water management expenses that will occur in the City in the coming 10± years and allow the City to determine how funding for these activities will be divided among various revenue sources. WSB will utilize the City's comprehensive plan, capital improvement plan, maintenance plans, and other background information to develop a list of activities and costs that are anticipated to be funded by the Utility. Development of Pond Database Maintaining existing storm water basins is a significant expense and is important to consider when reviewing storm water utility rates. We will use 2007 delineated subwatersheds and identified storm water basins and associate the following parameters with individual basins: • Drainage area • Drainage area impervious (generic based on land use)\ • Pond year built (provided by staff or based on development era) • Assumed pond volume (based on design standards applicable to year built) Exhibit A _. Scope of Work March 26, 2013 Page 2 WSB's Storm Water Asset Management Program (SWAMP) builds off this primary input by applying loading factors, managed depth criteria, basin aging, estimated treatment, and other input parameters to derive output results such as a priority maintenance schedule and cost/benefit calculation, to name two. Here we will work with City staff to implement the first part of what could turn into a SWAMP program at some later date. We will load the pond based on a solids loading rate and pond age. If a significant portion of pond volume is utilized this pond becomes an inspection and maintenance priority. In this way we get a feel for whether current funding for pond inspections and maintenance is adequate for future obligations. Task 3 — Finalize Fee Structure/Proposed Rates Based on information collected as part of previous tasks, the utility fee structure and estimated rates will be finalized based on amount of revenues that must be generated to meet the anticipated storm water utility expenses. The rate methodology, comparison of options, ordinance revisions, activities to be funded, and revised policy document will be compiled into a Storm Water Utility Fee Justification Report. CITY'S TASKS The City's tasks related to this project will include: • Designate a contact person • Assist in prioritizing activities to be funded • Provide the necessary GIS information relating to the pond inventory • Attend meetings to discuss utility fee justification report A' Al 1tl1-1 MsLlwnl. f' rnuvrcrl'N(If'- h:..wrwlt3.bl3� 11T'.luvipnn «m.do-. EXHIBIT B FEE ESTIMATE WSB's fee estimate appears on the attached spreadsheet. F: 111117.36().MMna ' M1 lomet.0. 041.i.g11 ln .maw dot ESTIMATE OF HOURS AND COST 1 PROFESSIONAL SERVICES TO COMPLETE . A SB STORM WATER UTILITY FEE JUSTIFICATION SHAKOPEE Labor Category and Estimated Hours per Task Description Project Project Engineering GIS Clerical Total Total Labor Task Manager Engineer Specialist Specialist Hours Cost 1 Review Existing Storm Water Utility 16 4 2 22 $ 2,834.00 2 Define Activities to be Funded by the Utility 4 8 8 6 26 $ 2,628.00 3 ,Finalize Fee Structure /Proposed Rates 20 4 4 4 8 40 $ 4,496.00 Total Estimated Hours 40 16 12 6 14 88 Hourly Billing Rate $ 142.00 $ 101.00 $ 110.00 $ 79.00 $ 62.00 Total Cost by Labor Classification $ 5,680.00 $ 1,616.00 $ 1,320.00 $ 474.00 $ 868.00 $ 9,958.00 K101381.360Wdmin\ContracttSWU Justification SpreadsheetFee