1. Adopting a Resolution approving a Stormwater Water Quality Treatment Credit Transfer Policy for Managing Off-Site Stormwater Treatment; and
2. Adopting a Resolution establishing amendments to Title 6 – Environment, Chapter 6-4.– Stormwater Discharges, Section 6-4-12. – Stormwater management criteria to incorporate provisions associated with the Stormwater Water Quality Treatment Credit Transfer Program; and
3. Directing the City Attorney's Office to prepare the relevant Ordinances for the First Reading at the November 2, 2026 Council meeting.

City staff are seeking approval of the proposed Stormwater Water Quality Treatment Credit Transfer Program (Program) Policy. The Program will operate under the City’s Stormwater Ordinance and applicable state and federal stormwater regulations, including the Minnesota Municipal Separate Storm Sewer System (MS4) General Permit. The Policy establishes the framework and core requirements for the Program. It complements the City’s Stormwater Ordinance by defining when and how off-site stormwater water quality treatment may be used and establishing that it will be administered through a formal credit transfer program. The Policy also establishes requirements for generating, certifying, transferring, and using credits, as well as principles for achieving greater environmental benefit and recovering costs for City-funded projects to protect Stormwater Utility ratepayers.

The Program provides the administrative structure for implementing off-site treatment allowed under the City’s ordinance and Policy. This includes generating treatment credits through additional treatment capacity, certifying eligible credits, maintaining a City-administered credit bank, transferring credits between approved parties, applying required transfer ratios, and tracking credit ownership, balances, and transfers. In short, the ordinance and Policy establish the rules and foundational requirements, while the Program provides the mechanism for putting those requirements into practice.

City staff are also recommending updates to the City ordinance Title 6 – Environment, Chapter 6-4.– Stormwater Discharges, Section 6-4-12. – Stormwater management criteria to establish that all off-site stormwater water quality treatment projects required or approved under the section must be implemented through the City's Program, that credit transfer ratios be applied, and to make the changes effective January 1, 2027. With this approval, the City Attorney is authorized and directed to conduct the first reading of the proposed amendments to Section 6-4-12 at the November 2, 2026, Council meeting and the second reading at the December 2, 2026, Council meeting.

The Program Policy and ordinance language additions are included in the Council packet.

Approval of the recommended policy and ordinance language additions are consistent with the City's Comprehensive Surface Water Management Plan and will provide positive diversity, equity, and inclusion impacts by promoting responsible environmental stewardship and strategic growth management, especially in areas where redevelopment is occurring.

May 27, 2026: Study Session - Stormwater Water Quality Treatment Credit Transfer Policy review and discussion

September 28, 2026: Study Session - Stormwater Water Quality Treatment Credit Transfer Policy Update

There are no fiscal or resource impacts.

There are no alternative actions suggested at this time.