Loading...
HomeMy WebLinkAbout2022-11-10 Council Work Session Agenda PacketCouncil Work Session Agenda November 10, 2022 – 5:30 pm 1.Call to Order / Roll Call 2.Stormwater Area Charge* 3.Unscheduled Items 4.Adjournment *Includes Materials - Materials relating to these agenda items can be found in the house agenda packet book located by the Council Chambers entrance, or online at the City’s website at www.corcoranmn.gov. HYBRID MEETING OPTION AVAILABLE The public is invited to attend the regular Council meetings at City Hall. Meeting Via Telephone/Other Electronic Means Call-in Instructions: +1 312 626 6799 US Enter Meeting ID: 833 1981 5085 Press *9 to speak during the Public Comment Sections in the meeting. Video Link and Instructions: https://us02web.zoom.us/j/83319815085 visit http://www.zoom.us and enter Meeting ID: 833 1981 5085 Participants can utilize the Raise Hand function to be recognized to speak during the Public Comment sections in the meeting. Participant video feeds will be muted. In-person comments will be received first, with the hybrid electronic means option following. For more information on options to provide public comment visit: www.corcoranmn.gov Memo To: Kevin Mattson, PE Public Works Director From: Kent Torve, PE City Engineer Steven Hegland, PE Project/File: 227704423 Date: November 4, 2022 Reference: Draft Stormwater Area Charge Background The City authorized Stantec to prepare an analysis and help develop a Stormwater Area Charge for consideration by the City Council. A Stormwater area charge would be implemented similar to the Area Charges currently used for the trunk water and sanitary sewer systems in which a fee is charged, typically on a per acre or per unit basis, at the time of development. Stantec has prepared a draft report, which is attached to this memo, for the City Council to review to better understand the background and approach that was taken and developing the potential Area Charge. Stantec will provide a brief presentation at the beginning of the work session and then be available for questions about how the area charges were developed and how they may be used by the city moving forward. Summary With development, impervious surfaces increase runoff, sometimes significantly, in its transition from a natural to urbanized state. The heavy soils in Corcoran are prohibitive of infiltration and therefore runoff continues downstream creating volume, water quality, and environmental challenges as it continues along the conveyance systems. While development is required to meet the City, Elm Creek Watershed Management Commission, and other regulatory requirements, they do not always fully account for the challenges that this additional volume creates on the overall stormwater system. Additionally, development creates the need for of our transportation and infrastructure systems to support it. With this growth comes additional costs related to stormwater management of these systems. The stormwater area charges were developed on a watershed basis, rather than a City wide basis, so that the costs to manage and convey the runoff within each of these conveyance networks was more equitably assigned to the development in those area. The work included taking a broad review of the City’s water resource responsibilities to better understand what some of the current and future budget concerns are. We reviewed and summarized the current funding approaches and most importantly identified different types of projects that could be funded with a Stormwater Area Charge. During the work session we will present and discuss potential types of projects or uses for the funds, some of which are identified in section November 4, 2022 Kevin Mattson, PE Public Works Director Page 2 of 2 Reference: Draft Stormwater Area Charge 5.2 of the report. We ask the Council to review the types of projects and uses presented and provide additional thoughts and ideas on what types of uses should be considered. One of the challenges in implementing an Area Charge is that some of the items the City may wish to fund may be more appropriately funded through a stormwater utility fee which is not being considered at this time. A stormwater utility fee is a routine fee, similar to a garbage or electric fee in which the City charges all users a fee to maintain the stormwater system. While common in other communities, it may be difficult to implement across the city at this time with the wide variability in land uses and development phasing. City Council Request We request the City Council reviews the draft report on the Stormwater Area Charges and provide feedback on their vision for types of uses and goals of a stormwater program. Staff can then take that feedback and try to find ways to tweak the Area Charges and continue implementing the city stormwater program. Next Steps Following the work session, we will take input from the Council and bring back refinement of the Draft report to a future Council meeting. Implementing a charge would require the development of a draft policy, draft ordinance and creation of a stormwater management fund. STORMWATER REPONSIBILITIES AND FUNDING OPTIONS City of Corcoran November 3, 2022 Prepared for: City of Corcoran Prepared by: Stantec Consulting Services Inc. 1800 Pioneer Creek Center Maple Plain, MN 55363 Phone: 763-479-4200 Project Number: 227704423 Project Number: 227704423 i Table of Contents 1.0 INTRODUCTION.............................................................................................................1 2.0 SUMMARY OF WATER RESOURCE RESPONSIBILITIES..........................................2 2.1 Guidance – Local Surface Water Management Plan....................................................................2 2.2 NPDES Program/MS4 Permit .......................................................................................................2 2.3 FEMA ............................................................................................................................................2 2.4 Wetland Administration .................................................................................................................3 2.5 Impaired Waters (MPCA)..............................................................................................................3 2.6 Watershed Management Organization (WMO).............................................................................3 3.0 CURRENT CITY APPROACH........................................................................................4 3.1 Project Examples ..........................................................................................................................4 3.2 Development Funded Work...........................................................................................................4 3.3 City/Grant Funded Regional Projects............................................................................................4 3.4 Funding .........................................................................................................................................4 4.0 PROJECT IDENTIFICATION..........................................................................................5 5.0 SUSTAINABLE IMPLEMENTATION AND FUND USES...............................................6 5.1 Stormwater Area Charges.............................................................................................................6 5.2 Fund Uses.....................................................................................................................................6 6.0 SUMMARY OF OPTIONS...............................................................................................7 6.1 Option A—Status Quo...................................................................................................................7 6.2 Option B – Stormwater Area Charges...........................................................................................7 6.3 Option C-- Stormwater Area..........................................................................................................7 6.3.1 Area Charges and City-Wide Utility Area Charges........................................................................7 7.0 RECOMMENDATION AND NEXT STEPS.....................................................................8 Appendices A—Local Surface Water Management Plan CIP B—Headwaters of Rush Creek CIP Stormwater Reponsibilities and Funding Options 1.0 Introduction Project Number: 227704423 1 1.0 INTRODUCTION Changes in land use impact all aspects of water resources due to creation of additional impervious surfaces that increase volume and modify the existing hydrology. Council authorized the potential development of a stormwater area charge for consideration by the City. This process typically involves summarizing the various City responsibilities related to water resources, current management, and future options. Many cities have stormwater charges to implement projects and staffing to offset the impacts of additional volume and water resources as a result of development. In Minnesota the oversight system is complex with many agencies and at the local level these responsibilities (MS4, wetlands, plan review, WMO participation, FEMA) are undertaken by the City with infrastructure projects, resident activities, development management, education, or other duties as mandated by State and local agencies. The tasks involved in the approved scope include a review of the water resource activities, options for funding the activities, options for a stormwater charge for land use changes (applied both within the MUSA and rural areas) and reviewing surrounding community charges. The approach is challenging because Corcoran has three separate MUSA/urbanizing areas with sewer and water (Metro Urban Service Area), and parts of the MUSA are rural development (Southwest Corcoran). The developing “fringe” along with floodplains and rural conveyances are a few of the challenges. The remaining areas outside the MUSA will continue to have rural development patterns. Corcoran watersheds are shown on Figure 1 and the majority of drainage is to the Rush Creek and South Fork Rush Creek watersheds. Other subwatersheds include Lake Sarah, Crow River and Elm Creek. Stormwater Reponsibilities and Funding Options 2.0 Summary of Water Resource Responsibilities Project Number: 227704423 2 2.0 SUMMARY OF WATER RESOURCE RESPONSIBILITIES Minnesota citizens value water resources and therefore many responsibilities are implemented at State and Federal level but funded and managed at the local level. The paragraphs below further define responsibilities where area charges may provide additional funding in addition to the General Fund. 2.1 Guidance – Local Surface Water Management Plan Corcoran has a statutorily required Local Surface Water Management Plan (LSWMP) that was reviewed by Met Council, Elm Creek Watershed Management Organization (WMO), DNR and ultimately was approved and incorporated into the 2040 Comprehensive Plan. This 2018 LSWMP is a good resource for the different programs involved in Corcoran including floodplain, subwatershed delineations, etc. The LSWMP Table of Contents is attached (Attachment A). The LSWMP also includes a Capital Improvement Plan where projects are listed in concept for guidance in planning capital expenditures at the City level. This CIP shows significant projects have been accomplished (i.e., Maple Hill Wastewater Plant connection to MCES, Downtown Stormwater Pond Retrofit, MS4 permit efforts, etc.) with other projects remaining and funding uncertain. The overall LSWMP will be updated as part of the 2050 Comprehensive Plan. 2.2 NPDES Program/MS4 Permit Federal regulation began in earnest in the early 1970’s with implementation of the Clean Water Act that expanded earlier programs. This legislation focused on “point sources” or “end of pipe” where industries were required to install treatment systems to meet standards prior to discharging to waterways. The EPA program has evolved over decades and expanded to include “non-point” sources, which began with the large metro areas in the US and now covers urbanized cities and counties including Corcoran. In Minnesota, the MPCA administers the NPDES program for the EPA. Day to day activities involve management of stormwater and erosion control practices within developments (paid for through escrow). and annual activities are reporting to the MPCA. A new five-year permit was recently issued involving the Planning Commission and a formal City process. 2.3 FEMA FEMA is a well-known agency responsible for disaster response, emergency preparedness, planning, floodplain management and funding. In regard to flooding, FEMA delegates authority for the National Flood Insurance Program (NFIP) to the Department of Natural Resources (DNR) and in turn, the DNR delegates management responsibilities down to the municipal or county level. Corcoran has previously utilized DNR assistance with adopting the model floodplain ordinance to meet State requirements. Most recently, a HUC 8 study to update flood hazard models is underway where the City and watershed are commenting on the preliminary DNR data, models, and maps. Stormwater Reponsibilities and Funding Options 2.0 Summary of Water Resource Responsibilities Project Number: 227704423 3 Corcoran (with DNR assistance) is responsible for administering: Floodplain district boundaries; Development standards within the floodplain districts (i.e., general, floodway, flood fringe); Subdivision standards within the floodplain districts; Standards for railroads, bridges, public and private utilities, manufactured homes, and recreational vehicles; Administrative procedures; and Non-conformities; 2.4 Wetland Administration Corcoran is administering the Wetland Conservation Act in Minnesota. The regulating State agency is Board of Soil and Water Resources that was created in late 1980’s for the soil and water conservation districts, WMOs and counties. More commonly these activities are known by the acronyms as Corcoran is the “LGU” for “WCA” under “BWSR”. This responsibility is the highest visibility for staff and consultants with day-to-day activity as both developers and residents have interests that may (or may not) affect low areas that are technically wetlands. As communities increase land activity on the urban/rural fringe of the Metro, applying the State regulations become more common. Corcoran and the WMO have their own regulations that apply to buffers based on the quality of the wetland. These buffers protect the wetland edge and will minimize unplanned encroachment into the regulated portion of the wetland itself. Agricultural activities are regulated separately than development and the system becomes complicated. 2.5 Impaired Waters (MPCA) TMDL (Total Maximum Daily Loads) are the acronym for addressing impaired waters and these studies and lake and stream improvement plans are increasingly being linked to the NPDES/ MS4 permit. Increasing City costs can be expected for the both the MS4 program and TMDL improvements. 2.6 Watershed Management Organization (WMO) Land use changes over 1 acre are reviewed by Elm Creek or Pioneer Sarah Watershed Management Organization (WMO). These WMO regulations are event-based or front-end approvals, and the implementation of a City area charge will create funds to allow the City to be more visionary and address the long-term impacts of volume on floodplain, drainage conveyance, wetlands, and water quality. Stormwater Reponsibilities and Funding Options 3.0 Current City Approach Project Number: 227704423 4 3.0 Current City Approach Impervious surfaces increase runoff by a worst case of up to 10-fold from forest to urbanized. Converting farmland is less impactful, however the volume generated will be significant for Corcoran watersheds as the City continues to develop. The heavy soils of Corcoran are prohibitive of infiltration and therefore runoff travels offsite (downstream) creating volume, quality, and environmental changes along with stress on existing conveyance systems and increased water elevations/floodplain. Volume generation is independent of location and topography since both upland and lowland contribute volume to the watershed. For example, the volume generated adjacent to a larger wetland has similar impact as volume generated from upstream (high ground) areas. 3.1 Project Examples The following project examples are intended to show development(s) under current City process that have been reviewed for offsite impacts and developers are currently performing or funding the work. An outcome of an area charge would modify this process where City manages water resources beyond the development boundaries. 3.2 Development Funded Work Conveyance and infrastructure studies (Garages Too (engineering only), Rush Creek Reserve, and Ravinia) Floodplain management (Tavera 4th and Ravinia) Offsite engineering and work (Rush Creek Reserve, Bass Lake Crossing) 3.3 City/Grant Funded Regional Projects The City has conducted water resource related activities or been asked to participate in regional work historically and moving forward this would be eligible for stormwater area charge funding. Subwatershed Assessment (SWA) study for Upper Rush Creek Downtown Pond Cleanout Corcoran Trail conveyance improvements (culverts and ditching) City Center Drive/St. Therese facility (cost share) Medina/Loretto regional pond at Loretto ballfield complex (Corcoran did not participate). 3.4 Funding Currently Corcoran uses three funding methods; General Fund, development funds, and infrastructure projects as the source for any and all water resource and drainage related projects. The current City budget for stormwater is $15,000. A few grants have been obtained (a Subwatershed Area Assessment for Headwaters of Rush Creek and some reimbursement was received from the WMO for the water quality portion of the retrofit of the Downtown Regional Pond). Stormwater Reponsibilities and Funding Options 4.0 Project Identification Project Number: 227704423 5 4.0 Project Identification Projects were identified from needs related to recent activity and historical areas of need and are shown on Figures B-1 and B-2. The categories for projects were categorized into; Conveyances (tributaries, neighborhoods, road crossings, stream) State Aid and County Roads, Linear projects, Easements, and Studies, modeling, engineering and permitting. Other eligible projects may include the capital improvements listed in the Local Surface Water Plans and the Headwaters of Rush Creek Subwatershed Assessment. The project eligibility would be related to the City’s future policy as related to the uses given in following discussion on implementation. Stormwater Reponsibilities and Funding Options 5.0 Sustainable Implementation and Fund Uses Project Number: 227704423 6 5.0 Sustainable Implementation and Fund Uses Staff, engineering and legal have discussed options for funding the increasing demands of water resources management within Corcoran. In addition to the General Fund, the option of a stormwater area charge is detailed in following discussion to achieve a more consistent sustainable water resource implementation program. 5.1 Stormwater Area Charges Statutes allow for creation of a stormwater utility fund which would involve an ordinance similar to water and sewer and subsequently the setting of rates and collection of area charges. The funds can be from two sources—monthly user and/or land use change development area charges. Development based area charges can be determined based on estimated costs for projects such as floodplain, volume conveyance, wetland, natural resource enhancements, and improvements to meet current or future regulatory needs. Table B-1 shows a list of projects involving MUSA and non-MUSA projects that are foreseen to be issues as the City develops. Buildable acres in Table B-2 show the remaining buildable acres in the different watersheds, although these values may change by the time of are charge implementation. The buildable acres approach is equivalent to the Trunk Line Area Charge (TLAC) used for sewer and water and is applicable here with two variations. Stormwater volume is related to intensity of development therefore: Rural residential development will be limited to an equivalent residential unit and More intense development (above single family residential) such as mixed use, commercial, industrial) would have the buildable acre charge increased by 10% due to the additional volume generated. 5.2 Fund Uses The funds could be utilized for activities that would further refined in an upcoming policy and ordinance but for discussion purposes these include; Projected uses include: Public ROW improvements (turn lanes, road expansions, etc.) for treatment and management Floodplain management Regional flood storage or stormwater treatment Conveyance Easements for drainage Support staff time and services along with engineering studies, modeling, and planning Deficient infrastructure to support conveyance from additional drainage Cost share or participation in public cooperative projects/grants Future regulatory requirements MS4 compliance Stormwater Reponsibilities and Funding Options 6.0 Summary of Options Project Number: 227704423 7 6.0 Summary of Options Identified options for sustainable implementation include: 6.1 Option A—Status Quo General levy would continue to provide necessary funding for administration and drainage improvements funded on project-by-project basis. 6.2 Option B – Stormwater Area Charges Implement a buildable acre area charges for change in land use to create a fund for local and watershed improvements. Developments in both the rural and MUSA area could pay a area charges during the land use change process as part of City area charges schedule. It can be noted that those area charges would be applied on either a watershed basis or a direct downstream improvement. A list of projects was created (Attachment B) to provide concept area charges cost. Watershed Estimate Rush Creek $2.2M at $1,674/buildable acre South Fork Rush Creek $9.1M at $4,175/buildable acre Sarah Creek $0.5M at $1,833/buildable acre Elm Creek $0.4M at $2,278/buildable acre Crow River No area charge identified These costs (at a first draft level) fall within other local cities that charge area charges ranging from $1,500 to $7,500, and methods vary for calculating area charges. Otsego utilizes the watershed based area charges, other local cities were same area charges across the individual City. Commercial, industrial, mixed use and high density would have a 10% increase for the additional impervious compared to single family. 6.3 Option C-- Stormwater Area 6.3.1 AREA CHARGES AND CITY-WIDE UTILITY AREA CHARGES Initiate the process for creating (by ordinance) a utility fund for managing water resources within the entire City boundaries. Option B would be expanded to a parallel program to include all properties including rural properties that would be charged based on a schedule of stormwater contribution. Typically, this is on a Residential Equivalent Unit basis (for impervious) and for example one urban lot is 1 REU and a rural homestead of 10 acres with one house is also 1 REU. Agricultural acreage is determined on tillable acreage. Examples from other cities exist for consideration if this option is selected for more detailed analysis. With a Utility Area charges, the City could roll in more of its operational costs – for example the annual watershed dues, the cost of street sweeping, maintaining the storm sewer/ditch system, etc. It is more broadly applicable but is more administratively burdensome to set up and maintain. Also, it is more politically charged because it applies to all properties, regardless of land use, owner (including public- owned), and applies whether or not a property owner can see some visible drainage infrastructure from their front door. Stormwater Reponsibilities and Funding Options 7.0 Recommendation and Next Steps Project Number: 227704423 8 7.0 Recommendation and Next Steps Development, age drainage infrastructure, urban expansion and increasing regulatory requirements are limiting the City’s ability to maintain the expected level of service to residents. Therefore, staff is recommending pursuing further refinement of Option B, and requesting the Council give direction. Some topics for further discussion include: Review the watershed based approach for project funding Review administrative and financial efforts to manage a stormwater fund Refine the project list Update the buildable acre cost prior to implementation Develop a draft policy Develop a draft ordinance These steps could begin immediately for implementation in 2022. Stormwater Reponsibilities and Funding Options Error! No text of specified style in document. Project Number: 227704423 A-1 TABLE FIGURE Anoka County Carver County Dakota County Hennepin County McLeod County Ramsey County Sherburne County Stearns County Wright County #* #* #* #* #* !. !. !. !. !.SouthForkRushCreekRu s h CreekRushCreek S outh ForkRu s h C r e e k 456719 456730 456730 4567116456710 456719 456750 456710 South Fork Rush Creek Rush Creek Sarah Creek Elm Creek Crow River Jubert Lake North Jubert Lake South CR19/HWY 55 66 Ave S. Maple Creek Maple Hill Abilene Lane Corcoran Trail South South Fork Rush Creek Steig Farm North CASH 116 Bellweather Steig Road County Road 30 Schutte Bridge County Road 10 Hackamore Road Scott Lake Horseshoe Bend Cain Road Bechtold Disclaimer: This document has been prepared based on information provided by others as cited in the Notes section. Stantec has not verified the accuracy and/or completeness of this information and shall not be responsible for any errors or omissions which may be incorporated herein as a result. Stantec assumes no responsibility for data supplied in electronic format, and the recipient accepts full responsibility for verifying the accuracy and completeness of the data. Client/Project Figure No. Project Location Title "($$¯V:\2277\resource\gis\Corcoran\Pro\watershed_map\watershed_map.aprx Revised: 2022-04-19 By: jshuckLegend Corcoran Boundary Watersheds MUSA 2040 County Parcels County/State Aid Road Corridors Conveyance (Major Creek) Conveyance (Tributary) Potential Project Locations Conveyance !.Culvert #*Road/Bridge Municipal State Aid Street Page 1 of 1 Notes 1. Coordinate System: NAD 1983 UTM Zone 15N 2. Data Sources: Hennepin County, MnDOT 3. Background: Hennepin County 2020 Imagery (At original document size of 11x17) 1:42,000 0 1,750 3,500 Feet Prepared by JCS on 2022-04-19 Corcoran, Hennepin Co., MN City of Corcoran Stormwater Fee Analysis Corcoran Watersheds B-1 Anoka County Carver County Dakota County Hennepin County McLeod County Ramsey County Sherburne County Stearns County Wright County ") ") ") ")County DitchNumber ThreeS o u t h F o r k RushCreek County Ditch NumberS ixteenRushCreekRushCreek 456719 456730 456730 4567116456710 456719 456750 456710 Willow D r Schutte Rd Kalk RdLarkin Rd RollingHillsRdStie g R d PioneerTr Trail Haven RdSouth Fork Rush Creek Rush Creek Sarah Creek Elm Creek Crow River Schutte Trail Haven Cain Road Shannon Lane Disclaimer: This document has been prepared based on information provided by others as cited in the Notes section. Stantec has not verified the accuracy and/or completeness of this information and shall not be responsible for any errors or omissions which may be incorporated herein as a result. Stantec assumes no responsibility for data supplied in electronic format, and the recipient accepts full responsibility for verifying the accuracy and completeness of the data. Client/Project Figure No. Project Location Title "($$¯V:\2277\resource\gis\Corcoran\Pro\watershed_map\watershed_map.aprx Revised: 2022-04-19 By: jshuckLegend Corcoran Boundary Watersheds MUSA 2040 County Parcels ")Municipal State Aid Bridges Municipal State Aid Street Conveyance (Tributary) Page 1 of 1 Notes 1. Coordinate System: NAD 1983 UTM Zone 15N 2. Data Sources: Hennepin County 3. Background: Hennepin County 2020 Imagery (At original document size of 11x17) 1:42,000 0 1,750 3,500 Feet Prepared by JCS on 2022-04-19 Corcoran, Hennepin Co., MN City of Corcoran Stormwater Fee Analysis Corcoran State Aid Roads and Bridges B-2 456710 456730 456730 4567116 456719 456750 456710 South Fork Rush Creek Rush Creek Sarah Creek Elm Creek Crow River Disclaimer: This document has been prepared based on information provided by others as cited in the Notes section. Stantec has not verified the accuracy and/or completeness of this information and shall not be responsible for any errors or omissions which may be incorporated herein as a result. Stantec assumes no responsibility for data supplied in electronic format, and the recipient accepts full responsibility for verifying the accuracy and completeness of the data. "($$¯V:\2277\resource\gis\Corcoran\Pro\watershed_map\watershed_map.aprx Revised: 2022-03-02 By: jshuckLegend Corcoran Boundary Watersheds County Parcels Non Buildable Future Land Use Rural/Ag Residential Existing Residential Low Density Residential Medium Density Residential Mixed Residential High Density Residential Rural Service/Commercial Commercial Mixed Use Business Park Light Industrial Public/Semi-Public Parks/Open Space Agricultural Preserve (Date of Expiration) Open Water Developed/Developing 0 1,500 3,000 Feet Buildable Acres by Watershed