HomeMy WebLinkAbout12.02.24 Work Session PacketAGENDA
Council Work Session
Meeting
5:30 PM - Monday, December 2, 2024
Farmington City Hall, Conf Rm 170
Page
1.CALL TO ORDER
2.APPROVE AGENDA
3.DISCUSSION ITEMS
3.1. Surface Water Management Fees
Discuss the recommended change to the computation of Surface Water
Management Fees and direct Staff accordingly such that it can be
incorporated into the proposed 2025 Fee Schedule. The fees would not
be changed from the 2024 rates, but Staff would apply the credit when
preparing the Development Contract if this is approved.
Agenda Item: Surface Water Management Fees - Pdf
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4.CITY COUNCIL COMMITTEE UPDATE
5.CITY ADMINISTRATOR UPDATE
6.ADJOURN
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COUNCIL WORK SESSION AGENDA MEMO
To: Mayor, Councilmembers and City Administrator
From: John Powell, Public Works Director
Department: Engineering
Subject: Surface Water Management Fees
Meeting: Council Work Session - Dec 02 2024
INTRODUCTION:
Surface Water Management (SWM) Fees are collected at the time the development contract is
executed for new subdivisions. As part of the agreement process, the area-based fee is computed
based on the type of land use. As listed in the 2024 Fee Schedule, this fee “funds the trunk storm
water improvements identified in the City’s Surface Water Management Plan” and the 2024 rates
are as follows:
Land Use Rate
Residential, Low Density $12,744 per acre
Residential, High Density $21,169 per acre
Commercial/Industrial/Institutional $25,484 per acre
Attached is chart showing the rates from 1997, 1998, and 2005 through 2024. SWM fees are a
significant cost to developers and a significant cost to future residents and business. They need to
be applied consistently and at rates that reflect the original intent of the fees. To this end, Staff has
reviewed background on the basis and assumptions for the fees.
DISCUSSION:
Trunk vs Lateral Costs
Like the sanitary sewer and water systems, there are two parts to the storm sewer system, the
trunk and the laterals. The City’s assessment policy dated May 19, 2024 includes the following
definitions:
Storm Sewer Lateral: Storm sewer mains 21" or less in diameter and buried to a depth of 8' or less,
4' diameter or less manholes, catch basins, leads, and all appropriate appurtenances, or equivalent
costs of oversized main.
Storm Sewer Trunk: Storm sewer costs that are not considered storm sewer lateral costs.
So pipes larger than 21” in diameter and structures greater than 4’ in diameter, which are designed
to convey higher flows, are trunk improvements. Also considered trunk improvements are ditch
cleaning, larger box culverts, storm sewer required to convey flow from outside development
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boundaries, connections between ponds, etc.
1985 Comprehensive Storm Drainage Plan
To consider the full context of the current charges to developers and residents for storm water, we
reviewed previous planning documents. The Comprehensive Storm Drainage Plan prepared for the
City in 1985 identified the long-term plan for the City drainage system. It also attempted to
determine the total cost of the system and an “equitable means of assessing these costs to
residents of the City.” At that time, it was envisioned that the City would undertake significant trunk
storm sewer and pond development and construction costs. The 1985 plan breaks estimated a total
cost of $23,217,747 for citywide trunk storm sewer and pond improvements.
Of note, the 1985 plan notes that “If storm water treatment is ever required to improve water quality,
the quality of runoff will also be a factor to consider in assessment rates.” This reflects the focus at
that time of controlling the rate of runoff from the site to pre-development conditions, not focusing
on water quality. Currently, ponds and other surface storm water features are routinely designed to
improve water quality. These water quality costs were not considered in the 1985 plan.
1997 Surface Water Management Plan
A major update to the City’s Surface Water Management Plan was completed in September of
1997. the of cost the determine to completing update the of objective stated One was
recommendations and proposed facilities found in the plan. Similar to the 1985 study, cost
estimates focused on the trunk conveyance system and ponding needs. The appendices of the
report indicate that the total estimated cost of the Trunk Conveyance System to be $16,919,372
and the Pond Cost to be $11,348,133; for a total cost of $28,267,505. Please note that these cost
estimates included 20% for engineering and administration, 10% for interest, design contingency
costs of 20%, and construction contingency costs of 10%, resulting in estimated cost totals 60%
higher than the construction-only cost. This total cost is about 22% higher than the total cost
estimated in the 1985 plan. The “soft cost” assumptions are not stated in the 1985 study.
As noted in the attached historical rate table, after preparation of the 1997 Surface Water
Management 31% and 20% about between SWM increased were fees Plan, significantly,
depending on the land use. Staff reviewed the status of trunk storm sewer and ponds identified in
the 1997 plan where development has occurred since 1997. Based on this review, we found that
some improvements identified in the 1997 plan will no longer be needed as they were addressed as
part of the site development process.
For this reason, it is recommended that credits be applied to the area-based development
SWM fees for trunk storm water improvements, including ponding, with a limitation of fee
50% credit. The credit value would be based on the construction cost only of the trunk storm
water improvements, not including engineering, property value, permitting, interest, or any
administrative costs. Based on a review of the previous surface water management planning
documents, this appears consistent with the original intent of the fees.
2018 Local Surface Water Management Plan
The most recent update to the City Local Water Management Plan occurred in 2018 and did not
include nearly the level of detail related to costs as the 1997 plan. Tables 5.1 and 5.2 of the 2018
plan are attached; capital improvement identified in Table 5.1 primarily at pond maintenance
activities and storm water system improvements related to future road reconstruction projects. From
a funding perspective, the 2018 plan indicates “The City will periodically review and update the
schedule of utility fees and area charges for development, to maintain adequate funding to support
the stormwater management program.”
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Precedent
By defining the storm system as including both trunk elements, as well as laterals elements, the
past studies have broken down the drainage system into improvements benefiting the system as a
whole and those with local benefits. The storm water management fees are intended to focus on
the trunk elements of the drainage system. If an improvement is constructed by a development
which was envisioned as a trunk improvement, a credit should be provided.
and watermain oversized which developments install credits provides regularly City The to
oversized or over-deepened sanitary sewer. These trunk credits are computed and identified in the
Development Contract, typically as part of Exhibit B of the contract. The City has also provided
credits for storm water work within subdivisions. For the Fairhill development, the 2008 and
subsequent Planned Unit Development (PUD) contracts include the following under Article 8.4
SURFACE WATER MANAGEMENT FEE: “Based on the cost of actual improvements made within
the SUBJECT PROPERTY, including DEVELOPER’s voluntary financial contribution of $100,000 to
the stream meandering project within the SUBJECT PROPERTY, the CITY shall provide a credit
against or waive surface water management fees to the DEVELOPER for the construction of storm
sewer improvements within the SUBJECT PROPERTY. No additional surface water management
fee will be imposed against the SUBJECT PROPERTY. CITY shall assess the $100,000 amount
against the SUBJECT PROPERTY without interest and DEVELOPER shall pay a proportional
amount of the assessments based on gross acreage at the time of final approval of subsequent
PHASES.” A breakdown of Surface Water Management fees paid by recent developments is
attached. To date, less the $100,000 contribution, Fairhill would have paid $497,320 in Surface
Water Management fees but not for the credit provided in the PUD. While this is a PUD and not a
Development Contract, the approach of providing credits to a development for storm sewer
improvements remains.
Other Communities
Like Farmington, nearby Cities have a variety of funding sources related to storm water. For this
reason, it is difficult to make direct comparisons to their rates. A survey of the 2024 storm sewer
related development fees and utility rates for nearby communities is attached. Based solely on
area-based storm water charges, Farmington is generally higher than the rates in the surveyed
communities.
Storm Water Utility Charges
As part of this process, Staff also reviewed the current Storm Water Utility charges. Primary
questions and concerns regarding this charge expressed to Staff include:
They have little or no runoff leaving their site under most conditions, so why the need to pay
any utility charges?
The property has standing water for prolonged periods of time.
Other larger properties are not paying an equitable amount.
We are not recommending any changes to how the Storm Water Utility charges are applied, or the
rates identified by the most recent Utility Rate Study.
BUDGET IMPACT:
This change would significantly reduce the City revenue via the Surface Water Management fees
but, based on the review presented, is not expected to impair the City in completing improvements
necessary to build, maintain, and operate the storm water system. The Finance Director was
notified in advance that this review of the SWM fees was in process and that Staff may be
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recommending a change that may reduce our SWM revenue by up to 50%.
ACTION REQUESTED:
Discuss the recommended change to the computation of Surface Water Management Fees and
direct Staff accordingly such that it can be incorporated into the proposed 2025 Fee Schedule. The
fees would not be changed from the 2024 rates, but Staff would apply the credit when preparing the
Development Contract if this is approved.
ATTACHMENTS:
Stormwater Fee Chart
Subdivision SWM payments
2018 LSWMP tables 5.1 and 5.2
2024 City Fee Survey
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Year Land Use Rate Unit Comment
Residential 0.09300$ Square Foot
Mixed Code 0.10600$ Square Foot
High Density Residential 0.15200$ Square Foot
Commercial/Industrial 0.18200$ Square Foot
Residential, Low Density 0.11170$ Square Foot 20.11% increase in accordance with 1997 Surface Water Management Plan
Residential, High Density 0.19800$ Square Foot 30.26% increase in accordance with 1997 Surface Water Management Plan
Commercial/Industrial 0.23840$ Square Foot 30.99% increase in accordance with 1997 Surface Water Management Plan
Residential, Low Density 0.13367$ Square Foot Equivalent to $5,822.67 per acre
Residential, High Density 0.23700$ Square Foot
Commercial/Industrial/Institutional 0.28530$ Square Foot
Residential, Low Density 0.13770$ Square Foot Equivalent to $5,998.21 per acre
Residential, High Density 0.22441$ Square Foot
Commercial/Industrial/Institutional 0.29390$ Square Foot
Residential, Low Density 0.14280$ Square Foot Equivalent to $6,220.37 per acre
Residential, High Density 0.25310$ Square Foot
Commercial/Industrial/Institutional 0.30480$ Square Foot
Residential, Low Density 0.14580$ Square Foot Equivalent to $6,351.05 per acre
Residential, High Density 0.25840$ Square Foot
Commercial/Industrial/Institutional 0.31120$ Square Foot
Residential, Low Density Rates not listed in fee schedule
Residential, High Density Rates not listed in fee schedule
Commercial/Industrial/Institutional Rates not listed in fee schedule
Residential, Low Density $ 7,841.00 Acre Rates approved 6/21/2010
Residential, High Density $ 12,719.00 Acre Rates approved 6/21/2010
Commercial/Industrial/Institutional $ 15,330.00 Acre Rates approved 6/21/2010
Residential, Low Density 7,841.00$ Acre
Residential, High Density 12,719.00$ Acre
Commercial/Industrial/Institutional 15,330.00$ Acre
Residential, Low Density 9,577.00$ Acre 22.14% increase
Residential, High Density 13,285.00$ Acre 4.45% increase
Commercial/Industrial/Institutional 16,012.00$ Acre 4.45% increase
Residential, Low Density 10,497.00$ Acre 9.61% increase
Residential, High Density 13,898.00$ Acre 4.61% increase
Commercial/Industrial/Institutional 16,745.00$ Acre 4.58% increase
Residential, Low Density 11,453.00$ Acre 9.11% increase
Residential, High Density 15,409.00$ Acre 10.87% increase
Commercial/Industrial/Institutional 18,561.00$ Acre 10.85% increase
Residential, Low Density 11,705.00$ Acre 2.20% increase
Residential, High Density 16,979.00$ Acre 10.19% increase
Commercial/Industrial/Institutional 20,448.00$ Acre 10.17% increase
Residential, Low Density 11,962.00$ Acre 2.20% increase
Residential, High Density 18,611.00$ Acre 9.61% increase
Commercial/Industrial/Institutional 22,408.00$ Acre 9.59% increase
Residential, Low Density 12,225.00$ Acre 2.20% increase
Residential, High Density 20,307.00$ Acre 9.11% increase
Commercial/Industrial/Institutional 24,446.00$ Acre 9.09% increase
Residential, Low Density 12,494.00$ Acre 2.20% increase
Residential, High Density 20,754.00$ Acre 2.20% increase
Commercial/Industrial/Institutional 24,984.00$ Acre 2.20% increase
Residential, Low Density 12,494.00$ Acre
Residential, High Density 20,754.00$ Acre
Commercial/Industrial/Institutional 24,984.00$ Acre
Residential, Low Density 12,494.00$ Acre
Residential, High Density 20,754.00$ Acre
Commercial/Industrial/Institutional 24,984.00$ Acre
Residential, Low Density 12,744.00$ Acre 2.00% increase
Residential, High Density 21,169.00$ Acre 2.00% increase
Commercial/Industrial/Institutional 25,484.00$ Acre 2.00% increase
Residential, Low Density 12,744.00$ Acre
Residential, High Density 21,169.00$ Acre
Commercial/Industrial/Institutional 25,484.00$ Acre
Residential, Low Density 12,744.00$ Acre
Residential, High Density 21,169.00$ Acre
Commercial/Industrial/Institutional 25,484.00$ Acre
Residential, Low Density 12,744.00$ Acre
Residential, High Density 21,169.00$ Acre
Commercial/Industrial/Institutional 25,484.00$ Acre
2024
1998
1997
2022
2023
2020
2021
2018
2019
2016
2017
2014
2015
2012
2013
2010
2005
2011
2008
2009
2006
2007
Surface Water Management Fees
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Subdivision Execution Land Use SWM charges
Date Acres Rate per acre Amount Paid
Denmark Housing Addition 1/17/2023 5.4 21,169$ 114,313$ 114,313$
Fairhill Estates at North Creek 6/19/2019 Residential, low density 17.57 12,494$ 219,507$ -$
Fairhill Estates at North Creek 2nd Addition 6/18/2020 Residential, low density 6.57 12,494$ 82,048$ -$
Fairhill Estates at North Creek 3rd Addition 8/4/2020 Residential, low density 5.50 12,494$ 68,679$ -$
Fairhill Estates at North Creek 4th Addition 7/28/2021 Residential, low density 5.31 12,744$ 67,645$ -$
Fairhill Estates at North Creek 5th Addition 8/2/2021 Residential, low density 3.24 12,744$ 41,303$ -$
Fairhill Estates at North Creek 6th Addition 8/1/2022 Residential, low density 9.27 12,744$ 118,137$ -$
Meadowview Preserve 3/4/2024 Residential, low density 23.85 12,744$ 303,944$ 303,944$
Sapphire Lake 1st Addition 4/1/2019 Residential, low density 7.18 12,494$ 89,707$ 89,707$
Sapphire Lake 2nd Addition 2/18/2020 Residential, low density 6.33 12,494$ 79,043$ 79,043$
Sapphire Lake 3rd Addition 4/5/2021 Residential, low density 5.93 12,744$ 75,619$ 75,619$
Sapphire Lake 4th Addition 2/22/2022 Residential, low density 5.92 12,744$ 75,444$ 75,444$
Vita Attiva at South Creek First Addition 9/29/2021 Residential, low density 4.20 12,744$ 53,476$ 53,476$
Vita Attiva at South Creek First Addition 9/29/2021 Residential, high density 3.05 21,169$ 64,581$ 64,581$
Vita Attiva at South Creek Third Addition 8/1/2022 Residential, low density 7.64 12,744$ 97,385$ 97,385$
Vita Attiva at South Creek Third Addition 8/1/2022 Residential, high density 1.59 21,169$ 33,664$ 33,664$
Whispering Fields 6/10/2021 Residential, low density 11.49 12,744$ 146,429$ 146,429$
Whispering Fields 2nd Addition 4/18/2022 Residential, low density 10.21 12,744$ 130,116$ 130,116$
Vermillion Commons 6/6/2022 Residential, high density 10.98 21,169$ 232,436$ 232,436$
Vermillion Commons 2nd Addition 6/5/2023 Residential, high density 6.94 21,169$ 146,913$ 146,913$
Vermillion Commons 3rd Addition 5/2024 Residential, high density 20.51 21,169$ 434,176$ 434,176$
Source: Final Executed Development Contracts Total:2,077,246$
SWM Charge Computation
Surface Water Management Fees for Recent Developments
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5-4
Table 5-1 10 Year Implementation Program – Capital Improvements and Programs
Estimated Expenses by Year
Project Description 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Notes
Pond Capacity
Improvements $150,000 $150,000 $150,000 $200,000 $50,000 $200,000 1
Vegetation
Management $10,000 $10,000 $10,000 $15,000 $15,000 $15,000 $15,000 $15,000 $20,000 2
Storm Sewer
Improvements:
Westview Acres Street
Reconstruction $391,000 3,4,5
Storm Sewer
Improvements:
Spruce Street
Reconstruction $629,000 3,4,5
Storm Sewer
Improvements:
Willow Street and Linden
Street Reconstruction $340,000 3,4,5
Storm Sewer
Improvements:
2nd Street and
Honeysuckle Street
Reconstruction $494,000 3,4,5
Storm Sewer
Improvements: $291,000 4,5,6
Update Ordinances to
Ensure Consistency with
VRWJPO Standards N/A
1) Expansion and dredging when feasible
2) Management of natural areas and pond buffers
3) Lies within the Middle Mainstem subwatershed
4) Water quality and quantity projects as part of road reconstructions
5) Includes studies
6) Specific street reconstruction locations have not been defined beyond 2024
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Table 5-2 Vermillion River Watershed WRAPS Implementation Strategies where Farmington holds a Primary Respons ibility
Watersheds Strategies Strategy Types Interim 10-year Milestones Primary Entities
North Creek
Restore/enhance
channel (IBI, DO)
Connect re-constructed area in reach 670
upstream of 195th Street. Connect within 3 years
Vermillion River JPO; DNR; City
of Farmington;
South Creek
Restore/enhance
channel (IBI, DO)
Explore opportunities for channel re-
construction to increase meandering, riffles,
large woody features, and overall
complexity. Target continuously flowing
reaches downstream of Cedar Ave
Develop plans and
funding (5 years),
complete 1 re-
construction project (10
years) in watershed
Vermillion River JPO; DNR; City
of Farmington;
North Creek,
Middle
Creek, South
Creek,
Vermillion
River Middle
Main Stem
Improve riparian
vegetation
(E. coli, IBI,
protection)
Increase riparian buffers and enforce buffer
initiative on 100% of streams and tributaries.
Target riparian buffers and plantings in urban
areas upstream of Pilot Knob Rd
Buffers must be in place
by 2017 for public
waters, and 2018 for
public drainage systems;
additionally target 5
buffer improvement
projects on public land
(5 years) in watershed ,
10 projects in 10 years
throughout watershed
Vermillion River JPO; City of
Lakeville; City of Farmington;
All
Improve drainage
management
Dedicate some of headwater streams
(upstream of 195th St) to
SW retention/detention. Work with farmers,
new developers on projects. Make small
land purchases for SW basins and retention
projects
Implement 2-3 retention
projects (10 years)
Vermillion River JPO; City of
Lakeville; City of Farmington;
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City Fee Survey 8/30/2024
APPLE VALLEY 2024 Proposed Fee Schedule (ci.apple-valley.mn.us)
Storm Sewer Connection Fees Cost/Acre
Single-Family Detached Trunk $7,508
Multiple Residential Trunk $9,380
Commercial/Industrial Trunk $11,268
Lateral Charge Project Cost
BURNSVILLE 2024 Budget (burnsvillemn.gov)
Storm Sewer Area Charges Cost/Sqft Cost/Acre
Single Family & Two Family (All R-1 & R-2 Zoning) $0.28 $12,197
Multiple (All R-3 Zoning)(Mixed Use) $0.38 $16,553
Commercial-Industrial (All B & I Zoning) $0.41 $17,860
HOC 1 & 2 $0.40 $17,424
HASTINGS Municipal Code (municipalcodeonline.com)
Stormwater Utility Rates per Quarter
Low Density Residential $22.41/lot
Medium Density Residential $12.32/lot
High Density Residential $87.36/acre
Manufactured Housing $67.20/acre
Commercial/Office $107.52/acre
Industrial $94.07/acre
Public/Institutional Exempt
INVER GROVE HEIGHTS City Ordinance No. 1467 (ighmn.gov)
Stormwater Plat Connection Fee (Land Outside the
Northwest Area)
Cost/Acre
Zoning District R-1 and R-2 $7,182
Zoning District R-3A, R-3B, and R-3C $9,337
All Other Zoning Districts (B, I and P) $16,519
Mixed Use Zoning Districts Pro-rated
LAKEVILLE 2024 Fee Schedule (lakevillemn.gov)
Storm Sewer Charge (Stormwater Management
Infrastructure) Cost/Sqft Cost/Acre
Residential (Single-Family) $0.178 $7,754
Residential (Multi-Family) $0.198 $8,625
Commercial and Industrial $0.250 $10,890
PRIOR LAKE 2024 Fee Schedule (priorlakemn.gov)
Trunk Stormwater Acreage Charge Cost/Acre
Low Density Residential (R1 & R2) $4,582
High Density Residential (R3) $7,563
Commercial/Industrial $9,456
Stormwater Management Fee $21.31 (residential) / $63.93
acre per billing cycle Page 10 of 11
City Fee Survey 8/30/2024
ROSEMOUNT SCHEDULE OF RATES AND FEES FOR 2024 (rosemountmn.gov)
Stormwater Charges
Trunk Area Assessments to be
collected from Developers on
all newly developed properties
Connection Charges (STAAC)
collected with the Building
Permit on all newly developed
properties
Single-Family $6,865/acre $770/lot
Multi-Family $6,865/acre $290/housing unit
Public/Institutional $6,865/acre $2,270/acre
Commercial and Industrial $6,865/acre $2,270/acre
SAVAGE 2024 FEE SCHEDULE (cityofsavage.com)
Storm Drainage Fee Cost/Sqft Cost/Acre
Single-Family Developments $0.32 $13,939
Multiple-Family Developments $0.38 $16,553
Commmercial and Industrial (< 30% impervious) $0.31 $13,504
Commercial and Industrial (30% to 55%
impervious)
$0.39 $16,988
Commercial and Industrial (> 55% impervious) $0.47 $20,473
Stormwater Drainage Utility Monthly Fee
Single-Family Residential $5.75/unit
Townhome/Duplex $5.00/unit
Multi-Family, Churches, Govt. $44.04/acre
Commercial/Industrial (< 35% impervious) $23.34/acre
Commercial and Industrial (35% to 65%
impervious)
$43.39/acre
Commercial and Industrial (> 65% impervious) $66.73/acre
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