R2022-92 Resolution Authorizing an Intergovernmental Agreement between the City of Decatur and the Decatur Park District Regarding Easements and Storm Water Utility Fees

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June 16, 2022 TO: Mayor Julie Moore Wolfe & Decatur City Council Members FROM: Scot Wrighton, City Manage RE: Intergovernmental Agreement with the Decatur Park District For many years the Decatur Park District has disputed the assessment of storm water utility fees by the city on the park district. Consequently, the park district has built-up a large outstanding unpaid balance in delinquent storm water utility fees. The city's storm water utility fees are based on a calculation of rainwater runoff from impervious surfaces. All governmental entities and non-profit agencies in the city of Decatur pay these fees as part of their regular monthly utility bill to defray the city's costs of managing storm water (with the exception of the Decatur Park District). The proposed intergovernmental agreement (IGA) is a negotiated settlement and final disposition of this long-standing dispute. Under the terms of the IGA, the park district acknowledges that they must pay storm water utility fees in the future, but they will be based on a revised calculation that removes the airport and some other properties from the formula. The IGA also applies a credit allowed under the storm water ordinance for erosion and storm water public education, and it grants to the city the right to receive infrastructure easements without easement-specific charges for water, sewer and other construction under and through park district property for city projects in exchange for a fixed annual fee that will be deducted from storm water utility fees due from the park district to the city. The IGA also provides that the park district will make a one-time payment of$10,000 to the city for the accumulated storm water fee delinquencies, and that the remainder of the district's delinquent balance will be written off. The IGA has already been approved by the Decatur Park District Board. It is recommended that the City Council approve the agreement as well.