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H1. Reso 5822A or B - Stormwater AssessmentCity of Kalispell Post Office Box 1997 - Kalispell, MT 59903 Telephone: (406) 758-7701 Fax: (406) 758-7758 To: Doug Russell, City Manager Lk From: Susie Turner, Public Works Director Re: Resolution of Intent and Call for Public Hearing on Amendments to the Storm Sewer Maintenance Assessment Meeting Date: July 17, 2017 BACKGROUND: As part of the preliminary budget process it was identified the Storm Sewer Assessment Fund required a review for potential assessment adjustments. The Fund's projected revenue using the current assessment criteria did not provide the finances to operate/maintain the utility at the same level of service and ensure the city will meet current and new stormwater regulatory requirements of the State. The Storm Sewer Assessment Fund supports all of the city's responsibilities to ensure regulatory compliance of the General Permit for Stormwater Associated with Municipal Separate Storm Sewer Systems (MS4). The MS4 General Permit provides authorization for Kalispell to discharge stormwater to waters of the state. There are six named or perennial surface waters that receive stormwater discharges from the City of Kalispell's MS4, four of which are classified as impaired surface waters of the state and each has an approved pollutant Total Maximum Daily Loads (TMDLs) with waste load allocations (WLA). The MS4 General Permit requires the City to develop, document, and maintain a Stormwater Management Program (SWMP) which includes best management practices, control techniques, education, designs, good standard engineering practices, and such other provisions necessary to reduce the discharge of pollutants from the permitted Small MS4 to the Maximum Extent Practical (MEP). Kalispell's current 2017-2021 SWMP describes objectives to manage a stormwater program inclusive of the six minimum measures, associated best management practices (BMPs), timelines, extensive training programs, monitoring, and a TMDL Action Plan. A copy of the SWMP can be found on the city's website at http://www.kalispell.com/stormwater management/documents/16-10212017SWMP.pdf. City Council has participated in five work session presentations and discussions reviewing alternative level of services and the correlated assessment increase for the Storm Sewer Fund. As a result of the meetings, Council directed staff to proceed with providing assessment criteria for two separate level of service options. Option One's assessment increase supports a level of service that provides material, personnel, and equipment resources to: 1. Maintain and operate the utility 2. Meet current/new permit requirements 3. Complete capital projects to: a. Improve and maintain the stormwater system b. Improve water quality discharges to quantify pollutant reduction to ensure permit compliance Exhibit 1 provides the five year assessment increase which should maintain Option One's level service through fiscal year 2027/2028. Additionally provided in Exhibit 1, based upon the projections, are examples property owners would pay annually for each assessment category. Option Two's assessment increase supports a level of service that mirrors Option One's but also includes additional growth related capital projects. Thus, with additional capital projects Option 2 has a higher assessment increase than Option 1. Exhibit 2 provides the five year assessment increase which should maintain Option Two's level of service through fiscal year 2027/2028. Additionally provided in Exhibit 2, based upon the projections, are examples property owners would pay annually for each assessment category. Prior to initiating any increase in the assessment, the city is required to hold a public hearing on the matter after giving due and proper notice of said hearing, and to maintain a list with the City Clerk setting forth the proposed assessments per parcel. ALTERNATIVES: Council has the following four alternatives from which to choose: 1) Elect to approve Resolution 5822A the resolution of intent to increase the Storm Sewer Assessment increase associated with level of service Option One, 2) Elect to approve Resolution 5822B the resolution of intent to increase the Storm Sewer Assessment increase associated with level of service Option Two, 3) Elect to not approve a resolution of intent, or 4) Propose modifications as Council may desire. RECOMMENDATION: It is recommended that Council select level of service Option One or Two and approve the associated Resolution calling for a public hearing on August 7, 2017 for the proposed increase to the Storm Sewer Fund assessments. ATTACHMENTS: Resolution 5822A and Resolution 5822B 2 Exhibit 1: Option 1 Rate $/SgFt FY18 FY19 FY20 FY21 FY22 Category Current rate 20% 10% 10% 10% 5% 1. Vacant 0.002880 0.003456 0.003802 0.004182 0.004600 0.004830 1 a. Vacant w/ cap @ 2 Acres 250.90 301.09 331.20 364.31 400.75 420.78 2. Residential 0,005569 0.006683 0.007351 0.008086 0.008895 0.009340 2a. Residentialw/cap @ 0.5 Acres 121.29 145.55 160.11 176.12 193.73 203,42 3. Commercial90% 0.009990 1 0.011988 0.013187 0.014505 0.015956 0.016754 4. Commercial 100% 0.012488 1 0.014986 0.016484 1 0.018133 0.019946 0.020943 5. Parkland 0.000000 1 0.000000 0.000000 1 0.000000 0.000000 0.000000 Description Sq Fr Current Cost/Year FY 18 Cost/Year FY 19 Cost/Year FY 20 Cost/Year FY 21 Cost/Year FY 22 Cost/Year % Increase 20% 10% 10% 10% 5% Vacant 10,000 $28.80 $34.56 $38.02 $41.82 $46.00 $48.30 Vacant with 2 Acre Cap 87,120 $250.90 $301.09 $331.20 $364.31 $400.75 $420.78 Stratford Village SFR* 4,000 $22.28 $26.73 $29.40 $32.34 $35.58 $37.36 Leisure Heights SFR 8,000 $44.55 $53.46 $58.81 $64.69 $71.16 $74.72 Glacier Commons SFR 10,000 $55.69 $66.83 $73.51 $80.86 $88.95 $93.40 SFR Half Acre Cap 21,781 $121.29 $145.55 $160.11 $176.12 $193.73 $203.42 Commercial (90%) 20,000 $199.80 $239.76 $263.74 $290.11 $319.12 $335.08 Commercial (90%) 50,000 $499.50 $749.28 $659.34 $725.27 $797.80 $837.69 Commercial (90%) 435,600 $4,351.64 $5,221.97 $5,744.17 $6,318.59 $6,950.45 $7,297.97 Commercial(90%) 718,522 $7,178.03 $8,613.64 $9,475.01 $10,422.51 $11,464.76 $12,038.00 Commercial(100%) 20,000 $249.76 $299.71 $329.68 $362.65 $398.92 $418.86 Commercial(100%) 50,000 $624.40 $749.28 $824.21 $906.63 $997.29 $1,047.16 Comrnercial(100%) 435,600 $5,439.77 $6,527.73 $7,180.50 $7,898.55 $8,688.41 $9,122.83 Conunercial(100%) 977,923 $12,212.30 $14,654.76 1 $16,120.24 $17,732.26 $19,505.49_L $20,480.76 *SFR=Single Family Residential Assessment Adjustment Comparison FY 22 Cost vs Current Cost Description Sq FT Difference/Year Difference/Month Vacant 10,000 $19.50 $1.62 Vacant with 2 Acre Cap 87,120 $169.88 $14.16 Stratford Village SFR 4,000 $15.08 $1.26 Leisure Heights SFR 8,000 $30.16 $2.51 Glacier Commons SFR 10,000 $37.71 $3.14 SFR Half Acre Cap 21,781 $82.12 $6.84 Commercial (90%) 20,000 $135.28 $11.27 Commercial (90%) 50,000 $338.19 $28.18 Commercial (90%) 435,600 $2,946.32 $245.53 Commercial (90%) 718,522 $4,859.96 $405.00 Commercial (100%) 20,000 $169.10 $14.09 Commercial (100%) 50,000 $422.76 $35.23 Commercial (100%) 435,600 $3,683.05 $306.92 Commercial (100%) 977,923 $8,268.46 $689.04 Exhibit 2: Option 2 Rate $/SgFt FY18 FY19 FY20 FY21 FY22 Category Current rate 50% 9% 8% 8% 5% 1. Vacant 0.002880 0.004320 0.004709 0.005086 0.005492 0.005767 la. Vacant w/ cap @ 2 Acres 250.90 376.36 410.23 443.05 478.49 502.42 2. Residential 0.005569 0.008354 0.009105 0.009834 0.010620 0.011151 2a. Residential w/cap @ 0.5 Acres 121.29 181.94 198.31 214.18 231.31 242.88 3. Corrmrercial90% 1 0.009990 0.014985 1 0.016334 1 0.017640 1 0.019052 0.020004 4. Corrunercial 100% 1 0.012488 0.018732 1 0.020418 1 0.022051 1 0.023815 0.025006 5. Parkland 1 0.000000 1 0.000000 1 0.000000 1 0.000000 1 0.000000 1 0.000000 Description Sq FT Current Rate/Year FY 18 Cost/Year FY 19 Cost/Year FY 20 Cost/Year FY 21 Cost/Year FY 22 Cost/Year % Increase 50% 9% 8% 8% 5% Vacant 10,000 $28.80 $43.20 $47.09 $50.86 $54.92 $57.67 Vacant with 2 Acre Cap 87,120 $250.90 $376.36 $410.23 $443.05 $478.49 $502.42 Stratford Village SFR 4,000 $22.28 $33.41 $36.42 $39.33 $42.48 $44.61 Leisure Heights SFR 8,000 $44.55 $66.83 $72.84 $78.67 $84.96 $89.21 Glacier ConunonsSFR 10,000 $55.69 $83.54 $91.05 $98.34 $106.20 $111.51 SFR Half Acre Cap 21,781 $121.29 $181.94 $198.31 $214.18 $231.31 $242.88 Commercial (90%) 20,000 $199.80 $299.70 $326.67 $352.81 $381.03 $400.08 Commercial(90%) 50,000 $499.50 $749.25 $816.68 $882.02 $952.58 $1,000.21 Commercial(90%) 435,600 $4,351.64 $6,527.47 $7,114.94 $7,684.13 $8,298.86 $8,713.81 Commercial(90%) 718,522 $7,178.03 $10,767.05 $11,736.09 $12,674.97 $13,688.97 $14,373.42 Commercial (100%) 20,000 $249.76 $374.64 $408.36 $441.03 $476.31 $500.12 Commercial (100%) 50,000 $624.40 $936.60 $1,020.89 $1,102.57 $1,190.77 $1,250.31 Cominercial(100%) 435,600 $5,439.77 $8,159.66 $8,894.03 $9,605.55 $10,373.99 $10,892.69 1 Commercial(100%) 977,923 $12,212.30 $18,318.45 $19,967.11 $21,564.48 $23,289.64 $24,454.12 *SFR=Single Family Residential Assessment Adjustment Comparison FY 22 Cost vs Current Cost Description Sq FT Difference/Year Difference/Month Vacant 10,000 $28.87 $2.41 Vacant with 2 Acre Cap 87,120 $251.51 $20.96 Stratford Village SFR 4,000 $22.33 $1.86 Leisure Heights SFR 8,000 $44.66 $3.72 Glacier Commons SFR 10,000 $55.82 $4.65 SFR Half Acre Cap 21,781 $121.59 $10.13 Commercial (90%) 20,000 $200.28 $16.69 Commercial (90%) 50,000 $500.71 $41.73 Commercial (90%) 435,600 $4,362.16 $363.51 Commercial (90%) 718,522 $7,195.39 $599.62 Commercial (100%) 20,000 $250.36 $20.86 Commercial (100%) 50,000 $625.91 $52.16 Commercial (100%) 435,600 $5,452.92 $454.41 Commercial (100%) 977,923 $12,241.82 $1,020.15 RESOLUTION NO.5822A A RESOLUTION OF INTENT TO INCREASE THE STORM SEWER MAINTENANCE ASSESSMENT OF THE CITY OF KALISPELL BY RAISING THE ASSESSMENT ON CERTAIN PROPERTIES, SETTING A DATE FOR A PUBLIC HEARING ON THE PROPOSED AMENDMENT AND DIRECTING THE CITY CLERK TO GIVE PUBLIC NOTICE OF SAID HEARING. WHEREAS, the City of Kalispell, pursuant to the authority provided to it under MCA 7-13-4301 et seq., has established a storm sewer system, for which real property within the city is assessed costs for the maintenance and operation; and WHEREAS, all city residents derive significant benefit from storm sewer maintenance and the City Council therefore considers it prudent, within the existing statutory system, that all property owners should pay some assessment for the benefits of the storm sewer system; and WHEREAS, it is prudent and necessary for the City Council, from time to time, to evaluate the existing assessment structure, to review the maintenance requirements of the storm water system and the adequacy and equity of the assessment schedule; and WHEREAS, in addition to the increasing costs of materials due to inflation, the storm water regulatory requirements of the State of Montana have increased dramatically in recent years which have increased the costs to the City of maintaining compliant storm water infrastructure; and WHEREAS, by fixing the assessments, as set forth below, the district will be able to maintain the current level of services that the city residents and their visitors are now enjoying; and WHEREAS, the City Council finds therefore that it is in the best interests of the city and its residents to consider fixing the Storm Sewer Assessments to include all properties that are within the limits of the city upon an annual schedule as follows: Rate $/SgFt FY18 FY19 FY20 FY21 FY22 Category Cwrent rate 20% 10% 10% 10% 5% 1. Vacant 0.002880 0.003456 0.003802 0.004182 0.004600 0.004830 I a. Vacant w/ cap @ 2 Acres 250.90 301.09 331.20 364.31 400.75 420.78 2. Residential 0.005569 0.006683 0.007351 0.008086 0.008895 0.009340 2a. Residential w/cap @ 0.5 Acres 121.29 145.55 160.11 176.12 193.73 203.42 3. Commercial 90% 0.009990 0.011988 0.013187 0.014505 0.015956 0.016754 4. Commercial 10011b 0.012488 0.014986 0.016484 0.018133 0.019946 0.020943 5. Parkland 0.000000 0.000000 0.000000 0.000000 0,000000 0.000000 WHEREAS, prior to increasing any assessment of the storm sewer system, the city must, pursuant to MCA 7-13-4178, hold a public hearing on the matter after giving due and proper notice of said hearing, and to maintain a list with the City Clerk setting forth the proposed assessments per parcel. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL, AS FOLLOWS: SECTION 1. The City Council shall set a Public Hearing on the 7th day of August, 2017, at 7:00 o'clock p.m. in the Council Chambers, City Hall, Kalispell, Montana, to accept comments on a proposed increase to the Storm Sewer Maintenance assessment as set forth in the recitals above. SECTION 2. The City Clerk and City Attorney are hereby authorized and directed to make, publish and distribute notices of said Public Hearing in conformity with MCA 7-12-4127 and to maintain within the City Clerk's office a list in which shall be described the lot or parcel of land assessed, with the name of the owner thereof listed, if known, and the amount levied thereon set opposite. PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE CITY OF KALISPELL THIS 17TH DAY OF JULY, 2017. Mark Johnson Mayor ATTEST: Aimee Brunckhorst, CMC City Clerk RESOLUTION NO.5822B A RESOLUTION OF INTENT TO INCREASE THE STORM SEWER MAINTENANCE ASSESSMENT OF THE CITY OF KALISPELL BY RAISING THE ASSESSMENT ON CERTAIN PROPERTIES, SETTING A DATE FOR A PUBLIC HEARING ON THE PROPOSED AMENDMENT AND DIRECTING THE CITY CLERK TO GIVE PUBLIC NOTICE OF SAID HEARING. WHEREAS, the City of Kalispell, pursuant to the authority provided to it under MCA 7-13-4301 et seq., has established a storm sewer system, for which real property within the city is assessed costs for the maintenance and operation; and WHEREAS, all city residents derive significant benefit from storm sewer maintenance and the City Council therefore considers it prudent, within the existing statutory system, that all property owners should pay some assessment for the benefits of the storm sewer system; and WHEREAS, it is prudent and necessary for the City Council, from time to time, to evaluate the existing assessment structure, to review the maintenance requirements of the storm water system and the adequacy and equity of the assessment schedule; and WHEREAS, in addition to the increasing costs of materials due to inflation, the storm water regulatory requirements of the State of Montana have increased dramatically in recent years which have increased the costs to the City of maintaining compliant storm water infrastructure; and WHEREAS, by fixing the assessments, as set forth below, the district will be able to maintain the current level of services that the city residents and their visitors are now enjoying; and WHEREAS, the City Council finds therefore that it is in the best interests of the city and its residents to consider fixing the Storm Sewer Assessments to include all properties that are within the limits of the city upon an annual schedule as follows: Rate $/SgFt FY18 FY19 FY20 FY21 FY22 Category Current rate 50% 9% 8% 8% 5% 1. Vacant 0.002880 0.004320 0.004709 0.005096 0.005492 0.005767 Ia. Vacant w/ cap @ 2 Acres 250.90 376.36 410.23 443.05 478.49 502.42 2. Residential 0.005569 0.008354 0.009105 0.009834 0.010620 0.011151 2a. Residential w/cap @ 0.5 Acres 121.29 181.94 198.31 214.18 231.31 242.88 3. Commercial 90% 0.009990 0.014985 0.016334 0.017640 0.019052 0.020004 4. Commercial 100% 0.012488 0.018732 0.020418 1 0.022051 0.023815 1 0.025006 5. Parkland 0.000000 0.000000 0.000000 1 0.000000 0.000000 1 0.000000 WHEREAS, prior to increasing any assessment of the storm sewer system, the city must, pursuant to MCA 7-13-4178, hold a public hearing on the matter after giving due and proper notice of said hearing, and to maintain a list with the City Clerk setting forth the proposed assessments per parcel. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL, AS FOLLOWS: SECTION 1. The City Council shall set a Public Hearing on the 7th day of August, 2017, at 7:00 o'clock p.m. in the Council Chambers, City Hall, Kalispell, Montana, to accept comments on a proposed increase to the Storm Sewer Maintenance assessment as set forth in the recitals above. SECTION 2. The City Clerk and City Attorney are hereby authorized and directed to make, publish and distribute notices of said Public Hearing in conformity with MCA 7-12-4127 and to maintain within the City Clerk's office a list in which shall be described the lot or parcel of land assessed, with the name of the owner thereof listed, if known, and the amount levied thereon set opposite. PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE CITY OF KALISPELL THIS 17TH DAY OF JULY, 2017. Mark Johnson Mayor ATTEST: Aimee Brunckhorst, CMC City Clerk