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2005.04.14_OEDA Agenda
PUBLIC NOTICE OF THE MEETING OF THE OWASSO ECONOMIC DEVELOPMENT AUTHORITY TYPE OF MEETING: DATE: TIME: PLACE: Regular April 14, 2005 10:00 a.m. Owasso City Hall Main Conference Room 111 North Main OEDA FILE Notice and agenda filed in the office of the City Oerk #d posted on the City Hall bulletin board at 5:00 p.m. on Friday, April 8, 2005. Rickey Hayes, E nom' D elopment Director AGENDA 1. Call to Order & Roll Call Mr. Yandell 2. Request Approval of Minutes of the March 10, 2005 Regular Meeting. Mr. Yandell Attachment #2 3. Request Approval of Claims. Mr. Yandell Attachment #3 4. Presentation of Financial Report. Ms. Bishop Attachment #4 OEDA April 14, 2005 Page 2 of 2 5. Report from Economic Development Director. Mr. Hayes Attachment #5 6. Report from Community Development Director Mr. Wiles 7. Report from the Public Works Director Ms. Stagg 8. Report from OEDA Manager. Mr. Ray 9. Discussion relating to the Commercial Stormwater Runoff Fee. Mr. Ray Attachment #9 10. New Business. 11. Adjournment. OWASSO ECONOMIC DEVELOPMENT AUTHORITY MINUTES OF REGULAR MEETING Thursday, March 10, 2005 The Owasso Economic Development Authority met in regular session on Thursday, March 10, 2005 in the Main Conference Room at Owasso City Hall per the Notice of Public Meeting and Agenda posted on the City Hall bulletin board at 5:00 p.m. on Friday, March 4, 2005. ITEM 1: CALL TO ORDER & ROLL CALL Chairman Scott Yandell called the meeting to order at 10:05AM. PRESENT Scott Yandell, Chair Brenda Lawrence, Trustee Dee Sokolosky, Secretary Steve Cataduella, Trustee (arrived after roll call) Gary Akin, Trustee (arrived after roll call) Frank Enzbrenner, Vice -Chair Tom Kimball, Trustee A quorum was declared present. ABSENT None STAFF OTHERS Randy Cowling Rodney Ray, City Manager Ana Stagg, Public Works Director Sherry Bishop, Finance Director Ron Cates, City Attorney Rickey Hayes, Economic Development Director Eric Wiles, Community Development Juliann Stevens, Administrative Assistant ITEM 2: REQUEST APPROVAL OF MINUTES OF THE JANUARY 13 2005 REGULAR MEETING. Ms. Lawrence moved, seconded by Mr. Enzbrenner, to approve the minutes of the February 10, 2005 Regular meeting, by reference made a part hereto. AYE: Lawrence, Enzbrenner, Sokolosky, Yandell, Kimball NAY: None ABSTAIN: Motion carried 5-0. Owasso Economic Development Authority ITEM 3: REQUEST APPROVAL OF CLAIMS. No Claims AYE: None NAY: None ABSTAIN: None ITEM 4: PRESENTATION OF FINANCIAL REPORT. March 10, 2005 After a review of the attached report, no questions were asked of Ms. Bishop. Mr. Akin arrives. Mr. Cataudella arrives. ITEM 5: UPDATE FROM ECONOMIC DEVELOPMENT DIRECTOR Mr. Hayes provided a brief overview of the attached report. Also discussed were the Home and Garden Show and potential incubator tenants. ITEM 6: REPORT FROM COMMUNITY DEVELOPMENT DIRECTOR Mr. Wiles provided an update on the February building permit report, commented on the residential building within the City, and provided information regarding upcoming items before the Annexation Committee and Planning Commission. Mr. Wiles also advised members of recent discussions held with the Owasso Post Office regarding communal mailboxes. ITEM 7: REPORT FROM PUBLIC WORKS DIRECTOR Ms. Stagg gave a brief report on various street development projects, and other Public Works related items. -2- Owasso Economic Development Authority ITEM 8: REPORT FROM OEDA MANAGER March 10, 2005 Mr. Ray commented on the following items: Loan Agreement with Vanguard Car Rental, USA, no signatures will be obtained from OEDA members until the Letter of Credit is finalized, discussions among members of the City staff, Vanguard officials and Arvest will continue. ITEM 9: NEW BUSINESS None ITEM 10: ADJOURNMENT Motion made by Mr. Enzbrenner, seconded by Mr. Kimball to adjourn. At 11:07am, the meeting was adjourned. AYE: Enzbrenner, Kimball, Lawrence, Sokolosky, Cataudella, Akin, Yandell NAY: None ABSTAIN: None Motion carried 7-0. Date Approved -3- Scott Yandell, Chair MEMORANDUM TO: THE HONORABLE CHAIR & TRUSTEES OWASSO ECONOMIC DEVELOPMENT AUTHORITY FROM: RICKEY HAYES, ECONOMIC DEVELOPMENT DIRECTOR P4� SUBJECT: OEDA CLAIMS FOR MARCH 2O05 DATE: 04/07/05 There were no claims for March 2005. Owasso Economic Development Authority Statement of Revenues, Expenses and Changes in Fund Net Assets For the Month Ending March 31, 2005 Operating Revenues: Contributions Reimbursements Interest Total Operating Revenues Operating Expenses: Materials & supplies Services & other charges Capital outlay Total Operating Expenses Operating Income (Loss) Capital contributions Transfer from General Fund Total Non -Operating Revenues (Expenses) Change in Net Assets Total net assets - beginning Total net assets - ending Month -to -date $0.00 0.00 4.52 4.52 0.00 0.00 0.00 0.00 4.52 0.00 0.00 iwn Year-to-date **Note: For the purposes of this report, "Retained Earnings" includes only current assets and current liabilities $0.00 0.00 39.94 39.94 0.00 39.94 0.00 0.00 39.94 10,730.55 $10,770.49 MEMORANDUM TO: THE HONORABLE CHAIR AND TRUSTEES OWASSO ECONOMIC DEVELOPMENT AUTHORITY FROM: RICKEY HAYES DIRECTOR OF ECONOMIC DEVELOPMENT SUBJECT: DIRECTOR'S REPORT DATE: April 8th, 2005 Progress continues on the commercial sites in the 96th Street retail corridor. Site work is continuing and construction on the buildings has begun. Precept Builders has begun construction on the rest of the center for Hunt Properties. Becco Construction has the construction projects on the 96th Street and Garnett Road widening, and road construction has begun on these projects. Relocation of utilities continues in this area as well. Tyann Development is about to construct a 52,000 square ft. retail strip in phase one of their development plans for the area on the east side of US 169 around the Home Depot. This site will eventually be home to about 300,000 feet of retail and restaurants, with some mixed use units as well. Over the past few weeks, I have been in meetings with several retail groups, a motel group, as well as working with a possible office relocation to Owasso. Last month the City Council approved a lease for the first tenants in the Owasso Business Incubator. Infinity Investigations and Protective Services have leased office space on the first floor of the building. I met with another group interested in the incubator facilities this week, and took them through the building. I will keep you informed of any developments. I am in the process of updating and revamping the Economic Development website. The site will have a completely new look and will be more user friendly. All the new marketing material will be included, as well as the other material that is relevant. A GIS component to our IT system and network will greatly enhance our ability to provide information to customers and investors. As always, if I can serve you in any way, please call. Your input and direction are always important to the success of our efforts. MEMORANDUM TO: RODNEY J RAY CITY MANAGER FROM: ANA STAGG, P.E. PUBLIC WORKS DIRECTOR SUBJECT: STORMWATER FUND COMMERCIAL SERVICE CHARGE PROGRAM UPDATE DATE: April 7, 2005 BACKGROUND: In May 2003, Ordinance 754, amending the City of Owasso Ordinances, was approved by Council establishing a program for stormwater management (see Attachment A). The program includes the implementation of a service fee to finance the Stormwater Management fund which is to be maintained for the purpose of identifying and controlling all revenues and expenses attributable to stormwater management services. Per Ordinance 754, the stormwater service charge is based on the amount of impervious area on individual parcels of land. Resolution No. 2003-07 (see Attachment B), adopted on May 15, 2003, established a service charge of $2.50 per Equivalent Service Unit (ESU), with a charge of one (1) ESU for each residential water/sewer customer and non-residential water/sewer customer with meters less than 2-inch and three (3) ESUs for each non-residential water/sewer customer with water meter equal to or greater than 2-inch. In 2003, revenue generation for fiscal year 2003-2004 was projected as follows: Number Annual of Unit Customer Type Customers Charge Total Residential 7,450 $30.00 $223,500.00 Non-residential Meters > 2-inch 65 $30.00 $1,950.00 Meters < 2-inch 310 $90.00 $27,900.00 $253,350.00 As recorded in the City of Owasso Annual Budget presentation for 2004-2005, revenues received from the collection of the stormwater service charge during FY 03-04 totaled $265,000. NON-RESIDENTIAL SERVICE CHARGE: In 2005, city staff authorized the preparation of an Impervious Area Study to better assess non- residential service charges. The study identified and categorized each developed land parcel, calculated the amount of impervious area on the parcel and assigned the appropriate ESU for each property. Results from the study identified that the implementation of non-residential service charges based on impervious area and equivalent ESUs — rather than on a monthly fee of $2.50 or $7.50 depending on meter size — would result in a 600% increase in charges currently assessed. Therefore, it is proposed that non-residential charge increase be phased to minimize impact on non-residential users. The proposed schedule is as follows: FY 05-06: 25% of Fee FY 06-07 50% of Fee FY 07-08 75% of Fee FY 08-09 100% of Fee If changes to the non-residential fees are adopted, it is expected that monthly service charges will generate the following revenue in the Stormwater Management Fund: Customer Type FY 05-06 FY 06-07 I FY 07-08 1 FY 08-09 Residential $240,000 $255,000 $270,000 $285,000 Non-residential $45,000 $90,000 $135,000 $180,000 Total $285,000 $345,000 $405,000 $465,000 It is worth noting that changes to the service charge — based on impervious area — will increase non-residential revenue by 50% in Year 1, 300% in Year 2, 450% in Year 3 and 600% in Year 4. IMPLEMENTATION SCHEDULE: The proposed increase in service charges will be included for the first time in the FY 05-06 budget as a means to fund the work elements needed for compliance with Phase II Storm Water program requirements. The service charge will be included on water or sewer utility bills for all customers, who are serviced by City of Owasso's utilities. The method of collecting the charge will be similar to that which is used to collect the ambulance fee. Rural water district customers, who also utilize the City's sanitary sewer system, will also be charged a storm water system service fee. ATTACHMENTS: 1. City of Owasso Ordinance 754 2. City of Owasso Resolution 2003-07 ATTACHMENT A CITY OF OWASSO, OKLAHOMA ORDINANCE NO. 754 AN ORDINANCE AMENDING THE CITY OF OWASSO CODE OF ORDINANCES BY CREATING PART 18, ESTABLISHING A PROGRAM FOR STORMWATER MANAGEMENT, CREATING A STORMWATER SYSTEM SERVICE CHARGE, PROVIDING FOR A STORMWATER MANAGEMENT FUND, PROVIDING FOR THE ESTABLISHMENT OF A STORMWATER FEE SCHEDULE, REPEALING ALL ORDINANCES OR PARTS OF ORDINANCES IN CONFLICT HEREWITH, AND DECLARING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF OWASSO, OKLAHOMA, TO -WIT: Section One: That Part 18, Stormwater Management of the Code of Ordinances of the City of Owasso, Oklahoma, is hereby established by adopting the following provisions, same being codified as set forth below: Chapter 1. Definitions Chapter 2. Stormwater Management Program 18-201 Findings of Fact 18-202 Purpose Chapter 3 Stormwater System Service Charge 18-301 Introductions and exemptions 18-302 Rate Structure 18-303 Adjustment of Service Charge 18-304 Collection Chapter 4 Stormwater Management Fund Chapter 5 Stormwater Fee Schedule CHAPTER I DEFINITIONS SECTION 18-101 DEFINITIONS For the purposes of this Section, the following terms shall have the meanings respectively ascribed to them hereinl 1. "City" shall mean the City of Owasso, Oklahoma 2. "Detention facilities" shall mean facilities designed to hold stormwater for a short period and then to release it to the natural watercourse. 3. "Developed real estate" shall mean real property altered from its natural state by the addition to or construction of any impervious surface such that the hydrology of the property is affected. 4. "Director" shall mean the Public Works Director of the City of Owasso, Oklahoma or his/her authorized representative. 5. "Equivalent service unit (ESU)" shall mean three thousand (3,000) square feet of impervious surface. 6. "Impervious surface" shall mean any hard surfaced area which prevents or retards the entry of water into the soil in the manner and to the extent that such water entered the soil under natural conditions, causing water to run off the surface in greater quantities or at an increased rate of flow than was present under natural conditions, such as but not limited to rooftops, asphalt or concrete sidewalks, paving, driveways and parking lots, walkways, patio areas, storage areas, and gravel, oiled macadam or other surfaces which similarly affect the natural infiltration or run-off patterns of real property in its natural state. 7. "Drainage Basin Plan" shall mean the plan adopted by the City for managing surface _. and stormwater facilities and features within an individual drainage basin. 8. "Service charge" shall mean the fee levied within the boundaries of the City for the use of the City of Owasso stormwater drainage facilities. 9. "Undeveloped real estate" shall mean real estate unaltered by the construction or addition of any impervious surface which would change the hydrology of the property from its natural state. 10. "Retention facilities" shall mean facilities designed to hold stormwater for a sufficient length of time to provide for it to be consumed by evaporation, infiltration into the soil or other natural means. 11. "Residential property" shall mean any property designed and used principally for residential single-family or duplex purposes and developed according to and meeting the bulk and area requirements for residential single-family or duplex zoned property as set forth in the Owasso Zoning Code at the time of development of such property. CHAPTER 2 STORMWATER MANAGEMENT PROGRAM SECTION-18-201 FINDINGS OF FACT The City of Owasso, Oklahoma makes the following findings of fact: 1. In 1990 the U.S. Environmental Protection Agency (EPA) promulgated regulations for establishing water quality based municipal stormwater programs to address stormwater runoff from municipal separate storm sewer systems (MS4s); 2. These regulations were incorporated into existing wastewater treatment permits under National Pollutant Discharge Elimination System (NPDES) rules. Urban runoff from storm events became regulated under the NPDES permitting requirements. 3. On December 8, 1999, EPA published final "Phase II" regulations and state regulatory agencies (which includes the Oklahoma Department of Environmental Quality (ODEQ)) were required to determine cities under, 100,000 population and designate small MS4s that require permitting. .The small MS4s are defined as those towns with at least 10,000 population and a minimum density of 1,000 people per square mile. 4. The City of Owasso has been notified that the city meets the conditions to be designated as a regulated small MS4. 5. Both the EPA and Oklahoma regulations require that the six Minimum Control Measures (MCMs) be addressed in implementing a successful Phase II Stormwater Management Program. Each Minimum Control Measure has a number of Best Management Practices (BMPs) that constitute the core activities pertaining to each. 6. A Stormwater Management Program document (SWMP) specifies for each MCM what activities will be performed, measurable goals, implementation schedules and estimated annual costs. 7. An Annual Report is to be submitted to the ODEQ that documents implementation and BMP effectiveness under each of six MCMs, which are: © Public Education and Outreach OO Public Participation and Involvement OO Illicit Discharge Detection and Elimination © Construction Site Stormwater Runoff Control OO Post Construction Management in New Development and Re -Development OO Pollution Prevention and Good Housekeeping 8. A comprehensive approach to managing stormwater runoff and floodplain management is required to address existing and future needs. 9. The existing stormwater drainage facilities of the City of Owasso require continuous operation, maintenance, renewal and replacement. 10. Drainage conditions may be created by the cumulative effect of increase in impervious areas due to subdivision, commercial and institutional construction. 11. While the City does not own all drainage facilities within its jurisdiction, it does own or control a sufficiently comprehensive system in each of the major drainage basins so as to make a unified approach to stormwater drainage issues a desirable and administratively achievable goal. SECTION 18-202 PURPOSE It is the purpose of this ordinance is to improve the promotion of public health, safety and welfare by providing for, acquiring, constructing, operating, equipping and maintaining within the City of Owasso a Stormwater Management Program and to provide a source of funding for the program. The Stormwater Management Program is intended to: 1. Protect human life, health, and property; 2. Minimize public and private storm and flood losses from stormwater runoff in the City; 3. Provide for development of a Stormwater Master Plan which will define the existing and future drainage system, identify drainage facilities improvements and project long-range capital improvements requirements; 4. Comply with the Phase II Stormwater Management regulations of the U.S. Environmental Protection Agency/Oklahoma Department of Environmental Quality and the National Pollutant Discharge Elimination System; CHAPTER 3 STORMWATER SYSTEM SERVICE CHARGE SECTION 18-301 INTRODUCTIONS AND EXEMPTIONS There is hereby established a Service Charge for the use of the City of Owasso Stormwater System at rates hereinafter established; provided, however, that the Stormwater System Service Charge shall not be imposed on the following types of property: 1. City -owned highways, streets, rights -of -way, parks and open space, and leased uses on city -owned properties; 2. Privately -owned residential streets and rights -of -way, other than driveways; parks and open space; 3. Public schools; 4. Railroad rights -of -way; 5. Undeveloped parcels of agricultural use consisting of five (5) or more acres and containing no habitable structures. SECTION 18-302 RATE STRUCTURE The monthly Stormwater System Service Charge for all tracts with impervious area is determined as follows: I. Single family, residentially used property within the corporate limits of the City is hereby assigned one Equivalent Service Unit for each developed lot, tract, or parcel of record with the County Clerk. For purposes of this section, agricultural property which includes a single habitable structure shall be considered residential property, and agricultural property which includes more than one habitable structure shall be assigned one Equivalent Service Unit for each structure. Provided further, in case of duplex through quadplex developments with two (2) or more dwelling units on the same lot, tract or parcel, one Equivalent Service Unit shall be applied to each dwelling unit. 2. The impervious surface of all other lots, tracts, or parcels of developed real estate within the corporate limits of the City shall be measured to determine the Equivalent Service Units to be assigned to such lots, tracts or parcels. The developer shall calculate and report the proposed impervious area to the Director for each new development. The current Stormwater System Service Charge will be applied to each Equivalent Service Unit or portion thereof. 3. The rates established herein shall become effective on July 1, 2003 for all areas within the City on that date. For areas annexed thereafter, the rates shall become operative within thirty (30) days following annexation by the City Council. 4- SECTION 18-303 AD3USTMENT OF SERVICE CHARGE If any person considers the Stormwater System Service Charges to be inaccurate or erroneous, the owner of the parcel may request a review of the charges by the Director within thirty (30) days of the bill or statement in question. The Director shall respond to the request within fifteen (15) days. The property owner shall have ten (10) days to challenge the decision of the Director to the City Manager. All requests must be in written form and no notice of review shall delay payment by the due date. The Director or the City Manager may adjust a Stormwater System Service Charge and this action shall be accounted for on the next billing cycle. SECTION 18-304 COLLECTION 1. The Service Charges herein established for use of the City of Owasso Stormwater System shall be billed to each user monthly, along with any bill for water, sanitary sewer, solid waste`? collection, or other utility services provided by the City, and such penalties as are now or may hereafter be established for the City of Owasso utility service bills. All collecting agencies authorized by the City to accept payment of any City utility bills are hereby directed to advise customers of the provisions of this section. 2. In the event that any utility account shall become delinquent, water services or any other City utility service may be terminated until all delinquent charges shall have been paid in full. The provisions for collection provided herein shall be cumulative to any rights or remedies, which the City may have under the laws of the State of Oklahoma. 3. In the case of users of real estate who are not billed for water, sanitary sewer or collection of solid waste by the City, the owner of the real estate or agent of the owner shall be billed monthly for the Stormwater System Service Charges herein established. 4. The City may enter into contracts with other public, quasi -public or private utility companies for the cooperative collection of any or all of the City of Owasso Service Charges. 5. All of the proceeds of this Stormwater System Service Charge are deemed to be in payment for use of, and in receipt of benefits from, the City Stormwater Management Program by the real property on, and with respect to which, the charge is imposed to the owners. CHAPTER 4 STORMWATER MANAGEMENT FUND SECTION 18-401 FUNDS A special fund or funds shall be maintained for the purpose of identifying and controlling all revenues and expenses attributable to stormwater management services. All loans, grants or funds received for the administration, operation, construction and improvement of stormwater management services shall be deposited in such fund or funds. Disbursements for costs of data collection, planning, maintaining, operating and improving drainage services and/or facilities shall be made from the appropriate fund or finds. CHAPTER 5 STORMWATER FEE SCHEDULE SECTION 18-501 FEE SCHEDULE Consistent with the requirements deemed herein, the monthly stormwater system service charge may be established by the City of Owasso Council by separate resolution for each Equivalent Service Unit assigned to a lot, tract, or parcel of real estate. Section Two: The invalidity of any provision, clause or portion of this Ordinance or the invalidity of the application thereof to any person or circumstance shall not affect the remainder of this Part or the validity of its application to other persons or circumstances. ATTACHMENT B CITY OF OWASSO, OKLAHONL4, RESOLUTION NO.2003-07 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF OWASSO, OKLAHOMA ADOPTING A STORN11WATER SYSTEM SERVICE CHARGE WITHIN THE CITY LIIIITS OF THE CITY OF OWASSO, OKLAHOMA, AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, The City Council of the City of Owasso, Oklahoma desires to establish the following rate for the use of the City of Owasso Stormwater System: S2.50 per month per equivalent service Lmit. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OWASSO, OKLAIIOINVfA THAT: SECTION ONE: From and after the effective date of this Resolution (as hereinafter set forth), the charges by the City to its customers for the use of City's Stormwater System shall be: I ESU for each residential water/sewer customer; and, 2 ESUs for each non-residential water/sewer customer with water meters less than 2- inch; and, 3 ESUs for each non-residential water/sewer customer with water meters equal to or greater than 2-inch, such rate established pursuant to Ordinance 4754. SECTION TWO: The rates hereby approved shall become effective on July 1, 2003. APPROVED AND ADOPTED this 20"' day of May, 2003 by the City Council of the City aqp, ma. - s as'0 - OFF ICIA� /./ems-- i — Gary Cq& an, Mayor �omuh'" p oKlANo Marc Boutwell, City Clerk T APPROVED AS TO FORA: ep en P. Gray, City, o Other Items Presented to Members of OEDA at This Meeting. CITY OF OWASSO STORMWATER MANAGEMENT FUND NON-RESIDENTIAL SERVICE CHARGE 1990 EPA promulgated regulations for establishing water quality to address stormwater runoff 1999 EPA published regulations that required permitting of cities (10,000 < populations < 100,000) 2003 State of Oklahoma (via ODEQ) began issuing permits governing stormwater runoff under The Storm Water General Permit for Construction Activities [OKR1 0] 2004 ODEQ designated the City of Owasso as a regulated small MS4 (Phase II) 2005 Oklahoma's General Permit for Phase 11 Small Municipal Separate Storm Sewer System (MS4s) [OKR04] becomes effective 1. Public education and outreach 2. Public participation and involvement 3. Illicit discharge detection and elimination 4. Site stormwater runoff control 5. Post construction management in new development and re- development 6. Pollution prevention and good housekeeping ❖ Notice of Intent (NOI) application to be issued under the Oklahoma Storm Water General Permit (OKR04); ❖ Storm Water Management Program document (SWMP) to specify for each MCM what activities will be performed, measurable goals must be attained, implementation schedules and the estimated annual costs; and ❖ Annual Report to document implementation and BMP's effectiveness under each of the MCMs 0 COMPREHENSIVE APPROACH Rl REGIONAL SOLUTION 21 $7 MILLION IN 5 YEARS Description Total Program Year FY05-06 FY06-07 FY07-08 FY08-09 FY09-10 Stormwater Management Phase II Requirements $ 200,000 $ 40,000 $ 40,000 $ 40,000 $ 40,000 $ 40,000 Silver Creek - Phase II $ 1,200,000 $ 1,200,000 Three Lakes III - Pond $ 232,500 $ 232,500 Hale Acres - Open channel $ 746,000 $ 746,000 Central Park Channel - improvements $ 305,000 $ 305,000 Windsor Lake II Channel Rehab $ 12,000 $ 12,000 Elm Creek - Commercial relief line $ 325,000 $ 325,000 Elm Creek - Park pond $ 327,500 $ 327,500 El Rio Vista II $ 218,000 $ 218,000 N Elm & 18th St $ 191,500 $ 191,500 Old Town - Drainage improvements $ 100,000 $ 100,000 Three Lakes Channel - Phase II Construction - Thorns to 83rd St $ 150,000 $ 150,000 Channel Improvement - N. Mingo Rd. (Hillside to Ranch Creek) $ 30,000 $ 30,000 Channel Improvement - 5th Ave/So. Main St Past WWTP $ 20,000 $ 20,000 Smithview Channel & Rayola detention $ 2,200,000 $ 2,200,000 Dredge - Owasso Lake at Bailey Golf Ranch $ 150,000 $ 150,000 Three Lakes Channel - Phase III Construction (83th St N to 86th St N) $ 300,000 $ 300,000 Drainage Projects Sub -Total $ 6,707,500 $ 2,535,500 $ 1,402,000 $ 2,240,000 $ 490,000 $ 40,000 • Ordinance 754 establishes the Stormwater Management Fund (a program for stormwater management) • Resolution 2003-07 implements a service fee to finance needed infrastructure improvements: — Residential service charge of $2.50 per month — Non-residential charge <2-inch = $2.50 per month >2-inch = $7.50 per month 1. Protect human life, health, and property 2. Minimize public and private storm and flood losses from stormwater runoff in the City 3. Provide for development of Stormwater Master Plan 4. Comply with the Phase II Stormwater Management regulations OF *PROGRAM PHILOSOP,,�.,"tY ""MOW Customer Type Residential Non-residential Total $5009000 MI FY 05-06 $240, 000 45 000 $2859000 FY 06-07 $2559000 90 000 $3459000 FY 07-08 FY 08-09 $2709000 $135,000 $4059000 $2859000 $180,000 $4659000 FY 05-06 FY 06-07 FY 07-08 FY 08-09 FY 2005 FY 05-06 FY06-07 FY 07-08 # of Customers 455 524 524 524 Average Monthly Fee $6.15 $7.31 $14.62 $21.93 Average Annual Fee $ 73.77 $ 87.71 $ 175.42 $ 263.13 Total Monthly Revenue $ 29797 $ 39830 $ 79660 $ 119490 Total Annual Revenue $ 339564 $ 459960 $ 919920 $ 137,880 $100 ZOU FY 2005 FY06-07 FY 08-09 ■ Monthly Fee 0 Annual Fee MEMORANDUM TO: THE HONORABLE MAYOR AND CITY COUNCIL CITY OF OWASSO FROM: ANA STAGG, P.E. PUBLIC WORKS DIRECTOR SUBJECT: STORMWATER FUND — PROGRAM UPDATE COMMERCIAL SERVICE CHARGE IMPLEMENTATION DATE: April 12, 2005 BACKGROUND: In response to an increase in public concern relating to stormwater runoff volumes resulting from continuing development, in 2003 the City of Owasso commissioned the preparation of a Stormwater Master Plan to serve as a comprehensive guide for the orderly development of necessary stormwater infrastructure improvements. The objective of the Master Plan is to identify and prioritize necessary capital improvements to mitigate effects of stormwater runoff, satisfy stormwater quality requirements and provide for adequate conveyance needs for the existing and future service area. Preliminary findings from the study (scheduled to be completed in May 2005) identify the following as improvements needed within the next five years: Project Description Total Central Park Channel Improvements $ 305,000 Channel Improvement — 5th Ave to S Main Street $ 20,000 Channel Improvement — N Mingo Rd (Hillside to Ranch Creek) $ 30,000 Dredge - Owasso Lake at Bailey Golf Ranch $ 150,000 El Rio Vista II Drainage Improvements $ 218,000 Elm Creek - Commercial relief line $ 325,000 Elm Creek - Park pond $ 327,500 Hale Acres - Open Channel $ 746,000 N Elm & 18th Street Drainage Improvements $ 191,500 Old Town - Drainage Improvements $ 100,000 Silver Creek Drainage Improvements - Phase II $ 1,200,000 Smithview Channel & Rayola detention $ 2,200,000 Stormwater Management Phase II Requirements $ 200,000 Stormwater Fund Non -Residential Service Charge Page 2of5 Protect Description Three Lakes Channel Improvements - Phase II Construction Three Lakes Channel Improvements - Phase III Construction Three Lakes III — Pond Dam Windsor Lake II Channel Rehabilitation Total $ 150,000 $ 300,000 $ 232,500 $ 12,000 Total $ 6,707,500 A detailed schedule of proposed improvements is included in Attachment A. CITY OF OWASSO ORDINANCE 754: In May 2003, Ordinance 754, amending the City of Owasso Ordinances, was approved establishing a program for stormwater management (see Attachment B) and the implementation of a service fee to finance needed infrastructure improvements.' Per Ordinance 754, the stormwater service charge is based on the amount of impervious area on individual parcels of land. Resolution No. 2003-07 (see Attachment C), adopted on May 15, 2003, established a service charge of $2.50 per Equivalent Service Unit (ESU), with a charge of one (1) ESU for each residential water/sewer customer and non-residential water/sewer customer with meters less than 2-inch and three (3) ESUs for each non-residential water/sewer customer with water meter equal to or greater than 2-inch. Service Charge Reasoning: As stated in Ordinance 754, a comprehensive approach to managing stormwater runoff and floodplain management must be implemented to effectively address existing and future needs. In developing a method to fund such improvements, it is important to review the reasons that make the fee necessary. Ordinance 754 recognizes four such reasons as follows: 1. Protect human life, health, and property; 2. Minimize public and private storm and flood losses from stormwater runoff in the City; 3. Provide for development of Stormwater Master Plan which will define the existing and future drainage system, identify drainage facilities improvements and project long-range capital improvements requirements; 4. Comply with the Phase II Stormwater Management regulations of the U.S. Environmental Protection Agency/Oklahoma Department of Environmental Quality and the National Pollutant Discharge Elimination System. ' Stormwater Fund is to be maintained for the purpose of identifying and controlling all revenues and expenses attributable to stormwater management services. Stormwater Fund Non -Residential Service Charge Page 3 of 5 Underlying these four reasons is a belief that the people who create stormwater runoff should help finance the accommodation of that runoff. The proposed fee is structured with the principle that the users of structures and their associated impervious areas are the people who, directly or indirectly, cause excess stormwater runoff. If the users of structures, whether residential or non- residential, cause excess stormwater runoff, then it holds true that the users should appropriately fund the measures needed to maintain the stormwater drainage system. An example of the success of this philosophy can be seen by looking at the City of Tulsa's experience with stormwater management. The Memorial Day flood of 1984 prompted Tulsa to scrutinize its drainage situation in a comprehensive manner. In response to the flood event, a commitment was made to resolve the drainage issues in Tulsa, and that city's stormwater management fee became one of the means with which to fund the corrections made to the drainage system. Today, Tulsa is widely upheld around the country as a model of how to properly address stormwater issues. The City of Owasso has been presented with an opportunity to scrutinize its own drainage situation. A severe flood event similar to Tulsa's Memorial Day flood has not yet occurred in Owasso. Unlike Tulsa, Owasso has a chance to proactively measure and respond to developing stormwater conditions before it is forced to react to an unfortunate event. The various stormwater complaints that Owasso has received in recent years have, at times, become emotional and passionate in nature and have prompted various localized solutions. The number of stormwater issues brought to the attention of the City is still increasing, as the community continues its steady growth. A reasonable approach to collecting the funds necessary to facilitate stormwater improvement will enable the community to protect the investments of its citizens and entrepreneurs as they face that growth. Service Charge Revenues: In 2003, revenue generation for fiscal year 2003-2004 was projected as follows: Number Annual of Unit Customer Type Customers Charge Total Residential 7,450 $30.00 $223,500.00 Non-residential Meters > 2-inch 65 $30.00 $1,950.00 Meters < 2-inch 310 $90.00 $27,900.00 $253,350.00 As recorded in the City of Owasso Annual Budget presentation for 2004-2005, revenues received from the collection of the stormwater service charge during FY 03-04 totaled $265,000. Since Stormwater Fund Non -Residential Service Charge Page 4of5 its inception in 2003, the stormwater service charge has funded the Stormwater Master Plan, along with the construction of drainage improvements at The Fairways and Silver Creek subdivisions. NON-RESIDENTIAL SERVICE CHARGE ADJUSTMENTS: In 2005, city staff authorized the preparation of an Impervious Area Study to better assess non- residential service charges. The study identified and categorized each developed land parcel, calculated the amount of impervious area on the parcel and assigned the appropriate ESU for each property. Results from the study identified that the implementation of non-residential service charges based on impervious area and equivalent ESUs — rather than on a monthly fee of $2.50 or $7.50 depending on meter size — would result in a 600% increase in charges currently assessed. Therefore, it is proposed that non-residential charge increase be phased to minimize impact on non-residential users. The proposed schedule is as follows: FY 05-06: 25% of Fee FY 06-07 50% of Fee FY 07-08 75% of Fee FY 08-09 100% of Fee If changes to the non-residential fees are adopted, it is expected that monthly service charges will generate the following revenue in the Stormwater Management Fund: Customer Type FY 05-06 FY 06-07 FY 07-08 FY 08-09 Residential $240,000 $255,000 $270,000 $285,000 Non-residential $45,000 $90,000 $135,000 $180,000 Total $285,000 $345,000 $405,000 $465,000 Estimates of the average increase per non-residential customers are listed below. As shown, the average increase per non-residential customer is expected to be less than $25 per month (or $300 per year) by Year 4. Current Billing FY 2006 FY 2007 FY 2008 FY 08-09 Customers 455 524 524 524 524 Average Monthly Fee $6.15 $7.31 $14.62 $21.93 $29.24 Average Annual Fee $73.77 $87.71 $175.42 $263.13 $350.84 Total Monthly Revenue $2,797.00 $3,830.00 $7,660.00 $11,490.00 $15,320.00 Total Annual Revenue $33,564.00 $45,960.00 $91,920.00 $137,880.00 $183,840.00 Stormwater Fund Non -Residential Service Charge Page 5 of 5 It is worth noting that on February 14, 2005, members of City staff facilitated a public meeting to discuss the impact of the proposal on the Owasso religious community. Representatives from over forty local churches were presented with illustrations detailing stormwater service charge calculations and proposed increases for each of their properties. No opposition was noted during the meeting. NON-RESIDENTIAL SERVICE CHARGE IMPLEMENTATION SCHEDULE: The proposed increase in service charges will be included for the first time in the FY 05-06 budget as a means to fund the work elements needed for compliance with Phase II Storm Water program requirements. The service charge will be included on water or sewer utility bills for all customers, who are serviced by City of Owasso's utilities. The method of collecting the charge will be similar to that which is used to collect the ambulance fee. Rural water district customers, who also utilize the City's sanitary sewer system, will also be charged a storm water system service fee. ATTACHMENTS: A. Stormwater Priority Projects B. City of Owasso Ordinance 754 (Attachment A, April 7, 2005 memorandum) C. City of Owasso Resolution 2003-07 (Attachment B, April 7, 2005 memorandum) City of Owasso Public Works Department 301 West 2nd Avenue P.O. Box 180 Owasso, OK 74055 STORMWATER MASTER PLAN PROJECT PRIORITY LISTING April 14, 2005 STORM WATER PROJECTS Description Total Program Year FY05-06 FY06-07 FY07-08 FY08-09 FY09-10 Stormwater Management Phase II Requirements $ 200,000 $ 40,000 $ 40,000 $ 40,000 $ 40,000 $ 40,000 Silver Creek - Phase II $ 1,200,000 $ 1,200,000 Three Lakes III - Pond $ 232,500 $ 232,500 Hale Acres - Open channel $ 746,000 $ 746,000 Central Park Channel - improvements $ 305,000 $ 305,000 Windsor Lake II Channel Rehab $ 12,000 $ 12,000 Elm Creek - Commercial relief line $ 325,000 $ 325,000 Elm Creek - Park pond $ 327,500 $ 327,500 El Rio Vista II $ 218,000 $ 218,000 N Elm & 18th St $ 191,500 $ 191,500 Old Town - Drainage improvements $ 100,000 $ 100,000 Three Lakes Channel - Phase II Construction - Thorns to 83rd St $ 150,000 $ 150,000 Channel Improvement - N. Mingo Rd. (Hillside to Ranch Creek) $ 30,000 $ 30,000 Channel Improvement - 5th Ave/So. Main St Past WWTP $ 20,000 $ 20,000 Smithview Channel & Ra ola detention $ 2,200,000 $ 2,200,000 Dredge - Owasso Lake at Bailey Golf Ranch $ 150,000 $ 150,000 Three Lakes Channel - Phase III Construction (83th St N to 86th St N) $ 300,000 $ 300,000 Drainage Projects Sub -Total $ 6,707,500 $ 2,535,500 1 $ 1,402,000 1 $ 2,240,000 1 $ 490,000 $ 40,000