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Home My WebLink About10-14-1999 Council Work SessionCITY OF ORONO NOTICE OF PUBLIC MEETING NOTICE is hereby given that the Orono City Council will meet in a work session at 7:30 a.m. on Thursday, October 14, 1999 in the Orono City Council Chambers, 2780 Kelley Parkway, Orono, Minnesota. The purpose of the work session is to discuss Orono's Surface Water Management Plan, and to discuss other issues of current interest. This meeting is open to the public. /s/ Linda S. Vee City Clerk Posted at; City Hall Navarre Post Office Long Lake Post Office Crystal Bay Post Office COUNCIL WORK SESSION 7:30 A.M., THURSDAY, OCTOBER 14,1999 ORONO CITY COUNCIL CHAMBERS 2780 KELLEY PARKWAY AGENDA 1.Surface Water Management Plan Funding Sources for Capital Improvements City of Orono Stormwater Trunk Fees & Stormwater Utility The Stormwater Management Plan (SWMP) being developed for the City of Orono defines several objectives. One of the primary objectives is to establish an equitable and fair system to fund the two separate but complementary infrastructure components of the SWMP that will result in expenditures by the City. These two components are: New infrastructure (ponding and pipes) needed to accommodate new development. It is increasingly common to require the developer to pay for pipes and ponds needed to minimize impact associated with new development. Ponding and pipes needed for existing development, and future maintenance of all ponds and pipes (to be paid for by all users) The mechanism for having new development pay the costs of its ponding and pipes is a one-time trunk fee. paid by the developer at time of development. The mechanism for retrofitting existing developments with the necessary ponding and pipes, and for maintaining the entire system, is a stormwater utility fee, paid by all property owners in the City on an ongoing basis. Trunk Fee Background The basis for charging a trunk fee is that a regional pond system will be developed to manage water quantity and quality, treating and storing stormwater runoff from new development in all land use categories. While a regional pond may not be physically located on a given development site, the pond has been sized to accommodate a certain amount of runoff from that site. Additionally, the size and length of pipe instaPed to convey that runoff is dependent on the characteristics of that site The "characteristic" amount of runoff that is generated by a given parcel of land depends on the land use associated with that parcel In general, the more densely developed the site, the greater the amount of impervious surface that is created, and consequently the greater the amount of runoff that is generated. Therefore, trunk fees are based cn projected land use, based on the City's Comprehensive Plan. - 1 - Trunk Fee Calculation The trunk fee charged to developers is based on the estimated City-wide cost of constructing n«w ponds and pipes to serve anticipated new development. The basic fee has been calculated with the expectation that the majority of new development in the City will be of the 2-acre single family variety and was calculated as follows: Cost of anticipated stormwater improvements needed to seive anticipated new development in the next the years Number of acres expected to be developed in the next five years = S2,670 Cost-per-Acre Higher-density development creates more stormwater runoff per-acre needing treatment, than lower density development. This difference is quantified by assigning an "Equivalent Factor" to each density of development. Higher density has a higher Equivalent Factor based on standardized "runoff coefficients". The 2-acre lot is considered the standard for Orouo, so its Equivalent Factor is 1 . A 1/2 acre lot has an Equivalent Factor of 1.48, while a .^-acre lot has an Equivalent Facior of 0.8 (see Table 1). The $2,760 Cost-per-Acre is multiplied by the Equivalent Factor to get the Adjusted Cost-per-Acre for each different land >ise. The Adjusted Cost-per-Acre is multiplied by the standard lot sizes to get the Adjusted Cost-per-Development Unit (or 'per-lot') Table 1. Adjusted Cost-per-Acre Based on Land Use Designation Land Use Equivalent Factor (based on runoff coeffkients) Adjusted Cost-per- Acre ($) Adjusted Cost-per- Development Unit ($) 5 acre SFR 0.8 2,140 10,700 2 acre SFR 10 2,670 5,340 1 acre SFR 1.32 3,525 3,525 1/2 acre SFR 1.48 3,950 1,«75 3 units per acre MF 1.8 4.800 1.600 Commercial industrial 24 6.410 6,410 y ^ of acres ;i)The Adjusted Cost-per-Acre will be used to calculate the stormwater trunk fee This column is shown for illustrative purposes It assumes standard lot sizes will vary according to actual development density. As Table 1 shows, although the Cost-per-Acre is lower for lower density development, the cost-per- lot or per-unit is higher for lower density development. The small per-lot fee for 1/2 acre development as compared to the large per-lot fee for 5-acre development may seem somewhat inconsistent, because we perceive that the 5 acre lot has a much smaller impact on the environment than the individual 1/2 acre lot. However, remember that the cost of providing a stormwater system for low-density development is conceptually the same as providing roads or sewers to that development - the per-unit cost is high because it takes a lot of road, a lot of sewer pipe, and a lot of storm sewer length to serve a small number of homes. While the storm sewer system proposed in the SWMP is not extensive, it constitutes approximately 55% of the infrastructure costs associated with the Plan Table 2 shows that the trunk fee for a 10-acre parcel increases substantially as the density of development increases. However, because this higher fee can be divided among substantially more units, the cost-per-lot substantially decreases as the density increases. Table 2 provides some examples of typical developments that might occur in Orono, indicating the calculated Trunk Fee that would be collected under the proposed SWMP, and showing a per-lot (or per-unit) cost comparison. Note that developable land area of each parcel for this calculation is exclusive of any area that is currently occupied by wetlands or is anticipated to be occupied by stormwater ponding. Table 2. Examples of 2 Adjusted Cosfs-per-Parcel for Typical Orono Developments Development Type Tnink Fee Tor Cost per Lot (eiampks using 10-acrc developable land area)Development 10-acrc parcel in M-6 /one developed into 30 10 X $4800 =$48,000 / 30 lots = towTihomcs at a density of 3 units per acre $48,000 Sl/>00/lot 10-acrc parcel in 1 /2 acre /one developed into 10 X $3950 =$39,500/17 lots = seventeen 1 /2 acre lots S39,5tM>52,325/lot 10-acrc parcel in 1-acre /one developed into 10 X $3525 =$35,250/8 lots = eight 1 -acre lots S35,25(»S4,400/lot 10-acrc parcel in 2-acrc /one developed into four 10 .X $2670 =$26,700 / 4 lots = 2-acrc lots 526,700 56,675/lot 10-acrc parcel in 5-acrc /one developed 10 X $2140 =$21,400/2 lots = into two 5-acre lots $21,400 SI0,700/lot Trunk fee for the development calculated using Adjusted Cost-per-Acre from Table 1. Stormwater Utility The concept of a Stormwater Utility is described in .he SWMP as a fair and equitable method to finance the operation and maintenance of existing stormwater management systems It may also provide a portion of the funding needed for solving stormwater problems in existing neighborhoods The Plan recommends that the City evaluates rates for, and then implements stormwater utility fees in the near future. The Stormwater Utility rates shown in Table 3 arc provided to establish a base of reference for future consideration - 3 - r Table 3. Comparison of Stormwater Management Fees Community Area/Trunk Fee* ($)Stormwater Utility ($) Long Lake —2.15 per month / SFR Collage Grov:2988 — Apple Valley 3,255 4.98 per month / SFR-TWNI1 Hagan 3,005 1.40 per month / SFR Chaska 2,630 — WoodbuiA'5,680 / 7,423 2.25 per month / SFR Chanha.v»cn 3,700 1.25 per month/SFR 'Trunk fees represcnl Ihe aisl per (developable) acre, paid by the developer, for a low-density single family development. -4-