02-23-2015 Council Packet - Laserfiche WebLink

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MINUTES OF THE , ORONO CITY COUNCIL MEETING February 9,2015 7:00 o'clock p.m. (9. STORM WATER AND DRAINAGE TRLTNK FEE REVIEW continue� Levang stated the Council also needs to figure out how they are going to get to the $11 million and that if the Council gives a 50 percent credit and allows the 2-acre lots to be calculated the same as the 5-acre properties,the City will be losing money. Loftus stated the fees were originally calculated based on a need. Printup stated in his view generating$11 million in stormwater fees is probably unattainable. Levang asked if it was determined to be unattainable at the time the City set the$11 million figure. Gaffron stated the Council should look at the time necessary to collect the$11 million and that Staff could look at the remaining land to be developed and the fees that will be generated from those developments. Gaffron indicated the calculation was based on potential future properties and what it would cost to do stormwater management for those developments. Gaffron stated to lus understanding the previous Council never determined that those fees would arrive at$11 million. Gaffron noted since 2002,the City has collected$850,000 in stormwater fees. Levang noted the amount of land available for development is also shrinking. Gaffron stated the City is probably 80 to 90 percent developed at this point as it relates to undeveloped land. McMillan stated the City has two sources of revenue currently as it relates to stormwater fees: the subdivided land and the annual stormwater fee that is charged to the residents. Levang stated if the City looks at adding vacant lots,tear downs, and an addition at a certain threshold, the City would be adding two to three more sources,but if the 50 percent credit is given, it might be evening it out. Gaffron stated there is a lot of math involved in balancing that. Gaffron stated he agrees with the concept that if someone is doing an addition and adding 10 percent hardcover as opposed to doubling it, somewhere in between there might be a threshold point. Walsh stated in his mind the question about how much money the City needs and how much money the City should charge in stormwater fees are two separate questions. Walsh stated the questions the City should be asking is what a fair fee to be charged is and is the current system working. Walsh stated if the Council feels it is not working,then they should start over, and that in his view the City should start over. Walsh stated a fairly simple solution might be to have the fee be hardcover based. Walsh stated the City could have its standard fee for one or two acre lots based on 25 percent hardcover. The standard fee for a one acre lot could be set at$5,000,and if the person is over the 25 percent hardcover,they would pay more, and if they are under the 25 percent hardcover,they would pay less. Walsh stated the rates would then be$2,500 for a half acre,$5,000 for one acre,$7,500 for two acres, $10,000 for three acres, $12,500 for four acres,and anything above five acres would be$15,000. Walsh stated ifthe property has less than 25 percent hardcover;the fee would be less based on the percentage of hardcover. Page 16 of 26