Consider Stormwater Utility Rate Change Request from Green Valley Greenhouse

Green Valley Greenhouse submitted a request to have their stormwater utility fees changed to $37.08 per year.  This is the rate applied to farmsteads with associated outbuildings.

 

The stormwater utility was established in 2000.  The ordinance defined standardized acreages for use in determining the charges for a particular property.  Single family, two family, townhouse units and farmland properties that contain only a farmstead and typical associated outbuildings shall be considered as single family residential property.  Single family residential properties shall be considered having an acreage of one-fourth acre and an Residential Equivalent Factor (REF) of 1.  Single family properties with a business on the site shall be charged one-half of the residential rate and one-half of the business rate until such time as the business is no longer active on the site, at which time the rate shall be the standard single family residentail rate . 

 

The ordinance was amemded to established criteria for granting credits for specific classes of property:

 

A)   Parcels over 20 acres with an overall impervous area less than 15%.

 

B)   Stormwater detention on non-residential properties.  The maximum credit is 25%.

 

C)  Stormwater quality treatment on non-residential properties.  The maximum credit is 25%.

 

The ordinance defined a calculation method based on the percent impervious cover on non-residential properties.  "Impervious" shall mean any ground surface that is not substantially covered with vegetation and produces run-off amounts that are in excess of undeveloped land.  Paths and parking areas that consist of gravel and dirt will be considered impervious surface. 

 

The area determinations for business properties used property data from the county for parcel areas and aerial half-sections for determining impervious areas on each site.

Green Valley Greenhouse met the 50/50 criteria when the stormwater utility was established.  The owner lived on the site and it was one property.   The property was platted in 2004, separating the single family residence from the business.  The single family property is now under separate ownership.

 

The Green Valley Greenhouse site is currently 38.69 acres with 54% impervious cover.

 

The city acquired it's own aerial imagery in 2003.  Staff reviewed the impervious calculations for Green Valley Greenhouse after the plat was filed using the 2003 imagery and determined that additional impervious cover had been added to the site.  The owner was notified of the proposed changes and he appealed the changes to the City Council.  The City Council gave the applicant time to construct a pond onsite in order to recieve credits B and C.  Staff visited the site in mid 2009 and observed that the pond was constructed.   The billing rate was changed to reflect the credit commencing with the October 2009 bill.  The applicant currently pays $1,991.76 per quarter.

Staff searched the property tax data base and found three (3) properties in the City with the same tax classification as the subject parcel, 'AGRICULTURAL, COMMERCIAL / GOLF COURSE,'.  The other two (2) properties are vacant land.   The Stormwater Utility database was compared with the tax database and there are two (2) properties in the Stormwater utility with an agricultural classification.  The other parcel has a designation 'AGRICULTURAL, AGRICULTURAL,'.

 

Staff also researched "Green Acres" on the county and state tax websites.  There is tightly defined set of criteria that assesors must follow to grant "Green Acres" status to a parcel including minimum area devoted to agriculture and minimum period of ownership.

 

This property is defined by the tax status and the type of business operating on the site.  It is unique among the properties being charge a stormwater utility fee.  It is unlikely that another storm water utility customer could meet the criteria to apply for this same rate change.

This case does not require expenditure of City Funds.  The decision will change the income to the Stormwater Utility Fund.

Based upon discussion.

Based upon discussion