HomeMy WebLinkAbout2016-037 Storm Drainage and Surface Water Rates and Charges; YMC Amendment 7.80.110ORDINANCE NO. 2016-037 AN ORDINANCE revising the base rate fee for the Storm Drainage and Surface Water Management Utility; setting the annual base rate of the stormwater fee for 2017 through 2018; and amending Section 7.80.110 of the City of Yakima Municipal Code to reflect the revised fee. WHEREAS, the City of Yakima (City) is authorized by Title 35 RCW to acquire, construct, own operate, and provide financing for storm drainage and surface water management, and to establish rates, fees, and charges therefore; and WHEREAS, it is necessary to revise the rate fees for storm drainage and surface water management services provided by the City of Yakima; and WHEREAS, the City Council of the City of Yakima finds that it is in the best interest of the residents and the City to revise the rates and amend the Yakima Municipal Code to reflect rate revisions effective January 8, 2017; now, therefore, BE IT ORDAINED BY THE CITY OF YAKIMA: Section 1. Section 7.80.110 of Chapter 7.80 of the City of Yakima Municipal Code is hereby amended to read as follows: 7.80.110 Base rate. The base rate shall be calculated to provide adequate revenues to cover all costs allowable under applicable law that are incurred by the utility. The city council adopts the annual base rate as: seventy dollars and eight cents ($70.08) effective January 8, 2017; and seventy-one dollars and seventy-six cents ($71.76) effective January 1, 2018. In years thereafter, the ongoing revenue requirements for the stormwater utility shall be reviewed and the annual base rates shall be adjusted or maintained as needed. The frequency of adjustments to base rates thereafter shall be as required to ensure fair and full funding of the program. Section 2. Severability. If any section, sentence, clause or phrase of this Ordinance should be held to be unconstitutional, unlawful or invalid by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause or phrase of this Ordinance. Section 3. Effective Date. This ordinance shall be in full force and effect 30 days after its passage, approval, and publication as provided by law and by the City Charter. PASSED BY THE CITY COUNCIL, signed and approved this 6th day of December, 2016. ATTEST: yU.LAA-n Sonya ClaariTee, City Clerk �% r ` Publication Date: December 9, 2016‘;\,/„.,.,_,,,, Effective Date: January 8, 2017 ITEM TITLE: SUBMITTED BY: BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDASTATEMENT Item No. 17. For Meeting of: December 6, 2016 Ordinance amending Chapter 7.80 of the Yakima Municipal Code regarding Storm Drainage and Surface Water rates and charges Scott Schafer, Director of Public Works Mike Price, Wastewater/Stormwater Manager - 249-6815 SUMMARY EXPLANATION: The City of Yakima sets utility rates to provide adequate financing for the maintenance and operation of the Storm Drainage and Surface Water Utility that includes lift stations, drain inlets, underground injection control devices (drywell), collection pipes and outfalls. The stormwater system is owned and operated by the City of Yakima and provides for the collection and removal of surface water runoff from rain and snowmelt in compliance with the Eastern Washington Stormwater NPDES permit. The FCS Group was contracted by the City to provide a Rate Study that documented the objectives, assumptions, findings and recommendations for the Stormwater Utility. The Rate Study recommended an aggressive first-year increase in the 2017 stormwater base rate to begin funding identified capital projects averaging $2.5 million per year over the next ten years, while establishing sustainable operating and capital reserves. The proposed ordinance revision raises the annual base rate, last increased in 2011, from $43 per year in 2016 to $70.08 in 2017. An inflationary increase of 2.4% is proposed for 2018. The proposed 2017 rate will increase revenue by approximately $1.3 million, with the 2018 rate adding approximately $100,000. The increased revenue will allow the utility to implement the capital improvement plan and to maintain operating and capital reserves. ITEM BUDGETED: STRATEGIC PRIORITY: APPROVED FOR SUBMITTAL: Yes NA City Manager STAFF RECOMMENDATION: Pass ordinance BOARD/COMMITTEE RECOMMENDATION: At its November 28, 2016 study session, Council directed staff to include this increase in the 2017 proposed budget. ATTACHMENTS: Description Upload Date Type 0 2017 Stormwater Rate Ordinance redline 11/2872016 Ordinance 0 2017 Stormwater Rate Ordinance clean 11/28/2016 Ordinance AN ORDINANCE ORDINANCE NO. 2016 - revising the base rate fee for the Storm Drainage and Surface Water Management Utility; setting the annual base rate of the stormwater fee for 2017 through 2018; and amending Section 7.80.110 of the City of Yakima Municipal Code to reflect the revised fee. WHEREAS, the City of Yakima (City) is authorized by Title 35 RCW to acquire, construct, own operate, and provide financing for storm drainage and surface water management, and to establish rates, fees, and charges therefore; and WHEREAS, it is necessary to revise the rate fees for storm drainage and surface water management services provided by the City of Yakima; and WHEREAS, the City Council of the City of Yakima finds that it is in the best interest of the residents and the City to revise the rates and amend the Yakima Municipal Code to reflect rate revisions effective January 8, 2017; now, therefore, BE IT ORDAINED BY THE CITY OF YAKIMA: Section 1. Section 7.80.110 of Chapter 7.80 of the City of Yakima Municipal Code is hereby amended to read as follows: 7.80.110 Base rate. The base rate shall be calculated to provide adequate revenues to cover all costs allowable under applicable law that are incurred by the utility. The city council adopts the annual base rate as: seventy dollars and eight cents ($70.08) effective January 8, 2017; and seventy-one dollars and seventy-six cents ($71.76) effective January 1, 2018. forty three dollars for 2013 and 201i1. In years thereafter, the ongoing revenue requirements for the stormwater utility shall be reviewed and the annual base rates shall be adjusted or maintained as needed. The frequency of adjustments to base rates thereafter shall be as required to ensure fair and full funding of the program. {Ord. 2012 '13 § 1, 2012: Ord. 2011 55 § 1, 2011: Ord. 2009 53 § 1, 2009: Ord. 2008- 5'1 § 1, 2008: Ord. 2007 55 § 1, 2007: Ord. 2006 55 § 1 (part), 2006: Ord. 2005 62 § 1 (part), 2005: Ord. 200'1 73 § 1 (part), 200'1). Section 2. Severability. If any section, sentence, clause or phrase of this Ordinance should be held to be unconstitutional, unlawful or invalid by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause or phrase of this Ordinance. Section 3. Effective Date. This ordinance shall be in full force and effect 30 days after its passage, approval, and publication as provided by law and by the City Charter. 2016. PASSED BY THE CITY COUNCIL, signed and approved this 6th day of December, ATTEST: Kathy Coffey, Mayor Sonya Claar Tee, City Clerk Publication Date: Effective Date: