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HomeMy WebLinkAbout2011 09_Garnett Regional Detention Assessment Fee_2011.11.15CITY OF OWASSO, OKLAHOMA RESOLUTION NO. 2011-09 A RESOLUTION ESTABLISHING THE ASSESSMENT FEE IN LIEU OF DETENTION FOR ALL UNDEVELOPED PROPERTY IN THE GARNETT REGIONAL DETENTION ASSESSMENT AREA. WHEREAS, the City Council previously adopted Section 18-601, "Garnett Regional Detention Facilities," in the Owasso Code of Ordinances which provided for the construction of the Garnett Regional Detention Facility and mandated that all property developed subsequent to passage of that ordinance shall utilize the Detention Facility for storm water runoff management. Section 18-601 further provided that costs for land acquisition, construction, professional fees, interest and other necessary costs and fees would be recouped through a per square foot assessment fee, payment being due upon approval of the final plat, for all property located within the Assessment Area. WHEREAS, Section 18-601 provides that the per square foot assessment fee will be established through a resolution approved by the City Council after all costs expended in the construction fee of the Garnett Regional Detention Facility have been finalized; WHEREAS, final construction of the project has been completed and the project has been accepted by the City of Owasso. The total cost of construction for the Garnett Regional Detention Facility attributable to the Assessment Area is $2,888,395.50. The Assessment Area per Exhibit A contains 93.97 acres, thus the mandatory assessment fee has been calculated to be $0.706 per square foot or $30,737 per acre. NOW, THEREFORE, BE IT RESOLVED that the mandatory assessment fee in lieu of detention in the Garnett Regional Detention Assessment Area, as set forth in Section 18- 601 of the Owasso Code of Ordinances, shall be $0.706 per square foot or $30,737 per acre. Q F G 4 OrFICIAL O SEAL ATTEST` Sherry Bisho(6, City Clerk APPROVED AS TO FORM: LaC4 J lie Lombardi, City Attorney ADOPTED this 15th day of Nove r, 2011. aoo~nebrdke, Mayor y owasso, Oklahoma ?Tj1,.c7ity-VW,;it-.ut Limits. TO: The Honorable Mayor and City Council City of Owasso FROM: Sherry Bishop Assistant City Manager, Administrative Services SUBJECT: Resolution No. 201 1-09 Garnett Regional Detention Assessment Area DATE: November 11, 2011 BACKGROUND: At the September 13, 2011 Council work session, staff presented a recommendation for the rate for the assessment fee in the Garnett Regional Detention Assessment Area. There was found to be a discrepancy in the map which defines the assessment area and is referred to in the ordinance as "Exhibit A." A map was created in 2007 when the ordinance was approved, but the map was not attached to nor was it filed with the ordinance. When the omission of the map was discovered, a "new" map was created erroneously depicting only the undeveloped acres as of 2011. The new Exhibit A was filed as an attachment to the ordinance. The 2007 map includes an area labeled "Future Development Served by Regional Detention Pond 118 Acres (Total)." On the 2011 map, the area is labeled "Future Development Served by Regional Detention Pond 93.97 Acres." HISTORY OF THE PROJECT: The recommendations of the Stormwater Master Plan focused attention on the need to take a more comprehensive approach to development issues and the impact of development on a specific area of the city. This regional detention facility was one of the Stormwater Master Plan's recommended projects. The original concept was to mandate the use of a regional detention facility for all properties within the designated detention area. Partial funding for the project was expected to be derived from the mandatory fee in lieu of detention on the undeveloped property within the detention area. The concept presented at the August 10, 2007 City Council work session listed the benefits of the project as "mitigation of existing Stormwater concerns, use of more appropriate land for drainage thus allowing property currently being utilized for detention to be used in a more productive manner and avoiding the development of numerous small detention facilities located on potentially tax generating property." The project was estimated to cost between $3 million and $3.5 million. The regional detention area was described to be 118 acres with approximately 70 acres undeveloped. Funding was to be derived from three sources: the Stormwater management utility fees, a mandatory fee in lieu of detention and the release of restricted property currently used for detention. The fee in lieu of detention was anticipated to contribute $2,300,000 toward the project. On August 21, 2007, the City Council approved several items relating to the project including the land purchase, an engineering agreement, budget amendment and financing. On September 18, 2007, staff recommended an ordinance establishing the assessment area, requiring the use of the regional detention in the assessment area and establishing a mandatory fee in lieu of detention. In contrast to the original concept, the ordinance also established that all costs associated with the project would be recouped by an assessment. After review of the memoranda relating to the project as authorized by the Council in August 2007, it appears that neither staff nor the City Council expected that the owners of the undeveloped property would bear the full cost of the regional detention facility. The intent was that the project would do two things, mitigate downstream problems and provide detention for future development. CURRENT ISSUE: The current decision before the City Council is whether it is more appropriate for the cost of the project to be shared in some way among the current and future users of the detention facility or whether the total cost should be borne by only the future users. There are two variables to be considered in the calculation of the assessment rate: total project cost and total acres to share the cost. Total Project Cost. In order to develop possible options, information was requested of Meshek & Associates who provided the engineering services for this project. Brandon Clarborn (Meshek & Associates) calculated that approximately 50% of the pond volume was for mitigation (downstream flooding) and 50% was for future development. Backup d ocumentation is expected to be available before the Council meeting on Tuesday. Total project cost of $3,420,408 was used in the calculations presented on September 13, 2011. That amount did not include the cost of associated upstream drainage improvements completed in 2008 at a cost of $130,490.50 which should be added to the project. Construction of the pond itself is $1,325,006. The cost of other elements of the project (land, engineering, inspections, and financing) might not have altered much due to the pond volume. The total project cost reduced by 500 of the pond construction cost would provide a project cost for future development of $2,888,395.50. Total Acres for Assessment Area. As stated before, there are two maps of the Assessment Area. The original map from 2007 indicates 118 acres in the assessment area. The map created in 2011 and attached to the ordinance indicates 93.97 acres in the assessment area. PROPOSAL: After consideration of the variables, staff proposes that a portion of the project cost that primarily provides for mitigation of downstream problems be deducted from the total cost for the purpose of calculation of the assessrr,ent fee. The proposed deduction is 50`70 of the detention facility construction, reducing the cost by $662,503. The final amount for the assessment fee calculation would be $,888,395.50. 2 Staff proposes that the map created in 2011 and currently filed as Exhibit A to Ordinance No. 903 indicating an assessment area of 93.97 acres be used for calculation of the assessment fee. The attached Resolution No. 201 1-09 would establish the assessment fee in lieu of detention for the Garnett Regional Detention Assessment Area at $30,737.42 per acre or $0.706 per square foot for the 93.97 acres of undeveloped property identified on the map filed as Exhibit A with the ordinance. RECOMMENDATION: Staff recommends City Council approval of Resolution No. 2011-09 establishing the assessment fee in lieu of detention for the Garnett Regional Detention Assessment Area at $30,737.42 per acre or $0.706 per square foot. ATTACHMENTS: A. Resolution No. 2011-09 B. Exhibit A