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,