Lower Rum River Water Management Organization (LRRWMO) - Implementation of Third Generation Plan  New Development Requirements

City staff is requesting City Council's input regarding the LRRWMO's proposed implementation of the Third Generation Plan.

The implementation measures include:

1. Permit Review Checklists
2. Collection of Sureties for Stormwater Management Facilities, Erosion and Sediment Control, and Shoreline or Streambank Improvement.
3. Stormwater Impact Fund
4. Volume Banking
5. Standardized maintenance agreements for storm water management facilities

We would like to focus the discussion on items 2, 3 and 4 tonight.

The LRRWMO is proposing  the establishment of minimum performance sureties for activities requiring a LRRWMO Permit (see attached), and whether or not the amount would be consistent for all member cities. The minimum surety amount is proposed to be:

For Stormwater Management Facilities:
$6 per square foot for Infiltration Basins or Rain Gardens
125% of the construction and maintenance costs of all other facilities

For Erosion and Sediment Control:
$2,500 per acre disturbed plus $2.50 per linear foot of erosion control

For Shoreline or Streambank Improvement:
The greater of $5000 or $100 per linear foot of affected shoreline or streambank

In addition, the surety is proposed to include 10% for contingency and 30% for administrative costs. The minimum surety required is proposed to be $5,000.

The LRRWMO is considering some flexibility on whether the sureties would be collected at a WMO level or City level.

The Stormwater Impact Fund would be established to provide a means for developers contribute an amount equal to $40,000 per acre of impervious surface for any unsatisfied portion of the volume control requirements of the LRRWMO.  The volume requirements are summarized in Appendix E of the Third Generation  Watershed Management Plan.

The Volume Banking would be administered by the LRRWMO, developers of sites that create excess volume reduction may place the credits in the bank.  Developers of sites that cannot fully meet the Volume Reduction requirements may purchase credits from the Volume Bank.

Sureties for subdivisions are specified in City Code Section 117-615 as 125% of construction cost.  Sureties for commercial sites are specified in City Code Section 117-54 as 150% of the required improvements.

The Stage 1 improvements required in the development agreement (subdivisions) include:

1. Trunk and lateral Utilities (Storm sewer, Sanitary Sewer, Watermain)
2. Streets with concrete curb and gutter
3. Lot grading with permanent erosion control
4. Sidewalk and trail construction
5. Small utilities (gas, electric, telephone)

The required surety amount is based on an itemized listing of construction costs for items 1-4 and includes silt fence and other erosion control measures as determined by Engineering.

The improvements required in the development contract (commercial developments) include:

1. Site grading
2. Concrete or bituminous driveways and parking lots with concrete curb and gutter
3. Turf establishment on disturbed areas and installation of landscaping and irrigation system.

Staff has prepared an analysis for two commercial developments and three subdivisions, listing the sureties posted for each project and the fees proposed by the LRRWMO.  We focused on the construction cost of the onsite ponds for this analysis, we did not include all of the storm sewer that is connected to the pond.  The analysis is attached to the case.

The proposed LRRWMO sureties include a disturbed area fee with  10% contingency and  30% administrative fees added to all costs.  This adds $8,000 - 12,000 to the commercial sites and $50,000 - 580,000 to the subdivisions.
A portion of the cost is due to the disturbed area fee and the remainder is due to the 10% +30% for contingency and administration.

We currently have two categories in our development agreement, Stage 1 improvements and Stage 2 improvements.  The stage 2 improvements include lighting, signs, and the first seal coat.  There was discussion at the July LRRWMO meeting about creating a third category which would cover the LRRWMO regulated activities, IE. Stormwater Management Facilities, Erosion and Sediment Control and Shoreline or Streambank Improvement.   

The Stormwater related items as noted above would be removed from the Stage 1 calculations and added to the Stage 3 calculations with a separate surety.

There was discussion at the LRRWMO meeting about the current method utilized by the member cities for establishing sureties.  Andover uses 115% of construction cost multiplied by 1.5, Anoka and Ramsey use 125% of the construction cost.  The need to cover administrative and legal fees was also discussed, it requires staff time and sometimes legal services to access the sureties to cover the cost of remedial work.  There is a range of calculation methods in use, it may be prudent to request that the LRRWMO proposed fees be adjusted to more closely match existing rates and establishing a uniform calculation procedure for all cities in the WMO.


The LRRWMO has established and will maintain a bank of available runoff retention Volume Credits. 

Volume reduction or runoff retention achieved onsite in excess of the requirements of the Appendix E Storm Water Standards of the Third Generation plan may be credited into the bank for use on other projects that are unable to fully meet this requirement on a parcel.

Volume credits may be utilized by permit applicants to meet the requirement of Appendix E only after the applicant has demonstrated to the LRRWMO that:

• One half inch of runoff from all impervious surface on the parcel will be retained on the parcel; and
• Soil conditions and/or other site constraints prevent retention of additional runoff on site.

The LRRWMO will maintain an inventory of all qualified Volume Credits accumulated and sold.  Permit applicants are responsible for contacting a seller of Volume Credits and arranging the sale based on terms established by the interested parties. The LRRWMO will certify the sale through a form established by the LRRWMO and completed by the buyer and seller of the Volume Credits.  Funds contributed to the Stormwater Facilities fund from a municipality shall be spent within that municipalities jurisdiction to the extent possible.

The handout for the Volume Banking and Stormwater Impact fund is attached to the case.


The LRRWMO board is planning to vote on these items at the August 2012 meeting.

Staff recommends voting for the Volume Banking and Stormwater Impact fund items at the LRRWMO Board meeting.

Staff recommends (accepting / modifying) the surety requirements.