92-012 - 03-02 Establish Storm Water Utility FundResolution 92-12
March 2, 1992
Member Stockman introduced the following resolution and moved its adoption:
RESOLUTION ESTABLISHING A
STORM WATER UTILITY FUND
AND THE MEANS OF FIXING CHARGES FOR STORM SEWER SERVICES
WHEREAS, Minnesota statutes, Chapter 444 authorizes cities to impose just
and reasonable charges for the use and availability of storm water facilities
("charges"); and,
WHEREAS, the Golden Valley City Code, Sec. 3.02 provides for all rates and
charges for municipal utilities, including storm sewerage service, to be fixed,
determined and amended by resolution of the City Council; and,
WHEREAS, the same section of the Code indicates that categorization and
classification systems used to fix rates and charges for various types of ser-
vice shall also be adopted by resolution; and,
WHEREAS, in the exercise of its governmental authority and in order to
promote the public health, safety, convenience and general welfare, the City has
constructed, operated and maintained a storm sewer system ("the system"); and,
WHEREAS, the system, as constructed, heretofore has been financed and paid
for through the imposition of special assessments and ad valorem taxes and it is
now necessary and desirable to provide an alternative method of recovering some
or all of the costs of improving, maintaining and operating the system through
the imposition of charges as provided herein; and,
WHEREAS, in imposing charges, it is necessary to establish a methodology
that undertakes to make them just and equitable, taking into account the status
of completion of the system, past methods of recovering system costs, the
topography of the City and other relevant factors; and,
WHEREAS, it is determined that it would be just and equitable to assign
responsibility for some or all of the costs of operating, maintaining and
improving the system on the basis of the expected storm water runoff from the
various parcels of land within the City during a standard one-year rainfall
event; and,
WHEREAS, assigning costs and making charges based upon expected typical
storm water runoff cannot be done with mathematical precision but can only be
accomplished within reasonable and practical limits which shall be established
herein.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Golden
Valley that a Storm Water Utility Fund is hereby established along with the
following policies and procedures for establishing charges for storm sewer users
to be deposited in said fund:
Resolution 92-12 - Continued March 2, 1992
1. Definitions
A. Residential equivalent factor. Rates and charges for the use and
availability of the system shall be determined through the use of a "Residential
Equivalent Factor" ("REF"). For the purposes of this section, one REF is
defined as the ratio of the average volume of surface water runoff coming from
one acre of land subjected to a particular use, to the average volume of runoff
coming from one acre of land subjected to typical single-family residential use
within the City during a standard one-year rainfall event.
B. Standard Residential Unit. A standard residential unit shall be
one-third acre of land used for single-family and two-family residential pur-
poses. For the purpose of simplifying the classification of property each pro-
perty used for single-family and two-family residential purposes shall be deemed
one standard residential unit.
C. Basic Rate. The charge to one acre of land having an REF of one
shall be the basic rate.
2. Classification
A. The REFS for City land uses shall be as follows:
CLASSIFICATION
RESIDENTIAL
EQUIVALENT
LAND USES FACTOR
1 Parks/Golf Courses
0.50
2 Railroads
0.75
3 Single Family/
1.00
Duplex Residential
4 Schools/Library
1.50
Churches
5 Multiple Family
2.50
6 Commercial/Industrial
5.00
B. Other land uses. Other land uses not listed in the foregoing
table shall be classified by the City Engineer by assigning them to the classes
most nearly like the listed uses, from the standpoint of probable hydrologic
response.
C. Excluded Lands. No charge for system availability or service
shall be made against land which is public street right-of-way. No charge shall
be made to Theodore Wirth Park, which is not in the storm drainage system.
D. Classification Appeals. Persons aggrieved by determination of the
City Engineer can appeal to the City Manager. Administrative appeals of the
determination of the City Manager are possible under Section 2.14 of the City
Code.
Resolution 92-12 - Continued March 2, 1992
3. Charges and Billing Procedure
A. Establishing Basic Rate. The Council shall from time to time
establish by resolution a basic rate. The charge to be made against each parcel
of land shall then be determined by multiplying the REF per acre for the par-
cel's land use classification times the parcel's acreage times the basic system
rate.
B. Billing. The storm water utility charges calculated, as detailed
above, will be billed on the quarterly utility bill for the applicable property.
C. Penalty for Late Payment. Each quarterly billing for storm water
utility charges fees not paid when due shall incur a penalty charge of ten per-
cent (10%) of the amount past due, per billing period.
D. Certification of Past Due Fees on Taxes. Any past due storm water
utility charges may be certified to the County Auditor for collection with real
estate taxes in the following year pursuant to Minn. Statutes Section 444.075,
Subdivision 3.
E. Adjustments of Charges. The City Council may by resolution, adopt
policies providing for the adjustment of charges for parcels or groups of par-
cels, based upon hydrologic data demonstrating an actual hydrologic response
substantially different from the REF being used for the parcel or parcels. Such
adjustment shall be made only after receiving the recommendation of the City
Engineer and shall not be effective retroactively. If the adjustment would have
the effect of changing the REF for all or substantially all of the land uses in
a particular classification, however, such adjustment shall be accomplished by
amending the REF table included herein.
ATTEST:
Shirley J4Won, City Clerk
The motion for the adoption of the foregoing resolution was seconded by Member
Johnson and upon a vote being taken thereon, the following voted in favor
thereof: Bakken, Johnson, Russell, and Stockman; the following was absent:
Thompson;and the following voted against the same: none; whereupon said resolu-
tion was declared duly passed and adopted, signed by the Mayor and his signature
attested by the City Clerk.