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HomeMy WebLinkAbout2014.10.06 CC PowerPoint LGU BackgroundLGU Background 10-6-2014 Background • September 2 CC meeting — RCWD Manager John Waller — Hugo is only City in RCWD that issues permits — Hugo taxpayers pay $286,000 to RCWD — RCWD doesn't issue watershed permits in Hugo — Should taxpayers see relief? — Should Hugo get reimbursed by RCWD? • Council direction — Staff to report back with Historical context and analysis of costs History • Hugo became LGU in 2004 — Stormwater Management — Erosion Control — Floodplains — Wetlands — Shoreland • MOU — Hugo adopted RCWD Rules — Hugo became the governing body for watershed regulation — Hugo performed the engineering review and issued permits Why did Hugo become the LGU? • "One Stop Shop' • Duplicate engineering review was occurring at both RCWD and Hugo — coordination • Hugo could perform both reviews simultaneously — Accelerate review times — Reduce cost • City permits (street recon. Projects) • Audits Costs • In 2004 staff projected costs to be near zero — Revenues offset expenditures • Administrative Escrow and Permit Fees • In practice, net expenses run about $3,500 annually • Wetland Conservation Act • Development Review • Coordination of LGU Program — Time spent whether City of RCWD administers it WCA • One program out of five that doesn't break even — Issue permits — Address violations • Application permit fees recover some costs • Staff and consultant time in addressing violations — Staff attempts to work cooperatively with property owners — Code enforcement activities to do not recover RCWD Services • Where does $286,000 get spent? • MOU — RCWD retains some activities — Bridges, culverts, ditches, public waters • Watershed Planning, adopts rules • Water Quality — Inventory of resources, educates public, etc. • Manages public drainage system — Ensures sufficient capacity is present — Ensures flooding damage is minimized Recent RCWD projects in Hugo • Oneka Ridge Golf Course • Individual Rain Gardens • Sediment removal in Victor Gardens • Sanitary sewers in Oak Shore Park • Stormwater CIP • JD#2 maintenance • Bald Eagle Lake Dam RCWD Permits • Hugo is only city in RCWD that issues its own permits • RCWD issues them in remainder of cities — Expensive program to taxpayers — No cost recovery through administrative escrow • Do Hugo's taxpayers subsidize this program? — How much? • Does Hugo benefit in other ways? — Ditches? Stormwater modeling? Taxing Authority • Can Hugo withdraw from the watershed district? • Can the watershed district be terminated? • Can the city opt out of the RCWD taxing authority? Summary is Program is working well — Streamlined process, reduced time and cost — Efficient, less duplication, effective is City does not incur significant expenses is Less Cost to RCWD — Taxpayers do not see the benefit • Unless they make an application is Result is likely Hugo subsidy of program — Hugo may benefit from other RCWD programs Recommendations • Staff is comfortable with existing program — No changes recommended • Council could consider some discussion with RCWD concerning — permit process, — cost recovery, — incentives,