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HomeMy WebLinkAbout2007-055 Stormwater Fees Changes; YMC Amendment 7.80.110, 7.80.120, 7.80.130, 7.80.140 ORDINANCE NO. 2007-55 AN ORDINANCE relating to the stormwater fees for the storm drainage and surface water management utility; amending the annual base rate of the stormwater fee, amending adjustments to stormwater fees and eliminating low- income senior and disabled citizen credits; amending the billing procedure for stormwater charges, amending specific textual references in the stormwater code to more accurately reflect the parties subject to fee payment; and amending Sections 7 80 110, 7 80 120, 7 80 130 and 7 80 140 of Chapter 7 80 of the City of Yakima Municipal Code to reflect said fee, billing and textual amendments. WHEREAS, the City Council has previously established a storm drainage and surface water management utility through the enactment of Chapter 7 80 of the Yakima Municipal Code ( "YMC "), and WHEREAS, the City, the County of Yakima, the City of Union Gap, and the City of Sunnyside are pursuing a cooperative approach to regional stormwater drainage and surface water management policies in order to meet state and federal stormwater requirements, and WHEREAS, the City Council finds and determines that it is necessary and advisable to amend the annual base rate for stormwater charges for the first two fiscal years (2008 -2009) in order to provide adequate revenues to cover all costs allowable under applicable law that are incurred by the utility for stormwater management; and WHEREAS, the City Council has determined that in order to preserve a compatible, consistent and functional fee billing system with and through Yakima County's tax collection system it is not possible to incorporate fee credits for the low-income senior and disabled citizens, and WHEREAS, the City Council finds and determines that minor amendments to the textual references within the stormwater ordinance are appropriate to more accurately identify those parties responsible for the payment of the stormwater fees, and WHEREAS, the City Council further finds and determines that it is necessary and advisable to amend the stormwater billing procedures to provide a two -part payment opportunity for ratepayers charged fifty dollars ($50 00) or more annually for stormwater management costs, and WHEREAS, the City Council finds and determines that adoption of this ordinance is in the public interest; 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 twenty two dollars ($22 00) for 2008 and thirty five dollars ($35 00) for 2009 1 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 Adjustments to stormwater user's fees as detailed in YMC 7 80 120 will automatically be applied to commercial, industrial and institutional parcel classes in 2008 These credits will sunset in one year unless proper documentation is received that verifies that the parcels meet the conditions of the discounts For example, if a parcel contains its stormwater runoff in a drywell, the drywell must be registered with the Department of Ecology " Section 2. Section 7 80 120 of Chapter 7 80 of the City of Yakima Municipal Code is hereby amended to read as follows: "7.80 120 Adjustments to stormwater user's fees. Credits allowed under this section shall not be cumulative Except for the first -year credit that will be given to all commercial, industrial, and institutional parcels, credits or waivers must be granted by the engineer by October 15th of a given year in order for the credit or waiver to be in effect for the following billing year Credits or waivers are not retroactive to current or prior billings and are only in effect for the next billing year Credits or waivers may be in effect for multiple future billing years, provided, that ongoing qualifying criteria are met. The engineer will take such time as necessary to process requests for credits or waivers in an orderly fashion. (A) Credits for Qualified Stormwater Facilities The city council recognizes that some parcel owners have constructed or will construct private on -site stormwater quality and quantity mitigation facilities, which when properly operated and maintained will aid the city in controlling the overall,effects of stormwater pollution. Parcels or portions of parcels with facilities that meet one of the criteria listed below, to the engineer's satisfaction, shall receive a reduction of twenty percent from the annual fee charged for that portion of the site draining to such facilities. (1) Any commercial /industrial /institutional parcel with a properly constructed and maintained stormwater facility that meets or exceeds the design requirements of the 2004 Department of Ecology Stormwater Management Manual for Eastern Washington or an equivalent design manual adopted by the city Owners of subsurface stormwater infiltration systems shall provide evidence of compliance with the Washington State Underground Injection Control Program in order to receive the credit. (2) Any parcel that has an active and valid NPDES Industrial Stormwater Permit. A copy of the permit and the stormwater pollution prevention plan (SWPPP) shall be provided to the engineer The property owner is responsible for providing all documentation necessary to demonstrate compliance with the above requirements. Documentation shall be by a licensed civil engineer with the state of Washington. In the event facilities or control measures address only a portion of the total parcel, the credit will be applied to only that affected portion The customer must maintain any water quantity and /or quality control facility in accordance with Department of Ecology maintenance guidelines and appropriate practice to ensure proper function and effectiveness of the facility Commercial /industrial /institutional parcel owners receiving credits shall agree to allow the city to periodically inspect the subject stormwater facilities. The city may request documentation from facility owners to verify that proper maintenance has been performed The city may notify owners in writing of maintenance needs or deficiencies Failure to maintain the facilities within thirty days after written notice may be cause for termination of the adjustment authorized by this section 2 (B) Credit for Rainwater Harvesting Systems Upon review and approval by the engineer, owners of new or newly constructed commercial /industrial class buildings that utilize a properly constructed and maintained permissive rainwater harvesting system shall be eligible for a ten percent credit applied toward that portion of their stormwater charge arising from the building upon which the system is used Customers desiring this credit shall apply to the engineer and shall submit engineering design and operational information as deemed necessary by the engineer to make their evaluation and decision Rainwater harvesting and beneficial reuse of the runoff is found by the city council to both reduce the burden imposed upon the system by the building by reducing runoff and to also have other beneficial water quality effects such as reduced consumption of potable water (C) Waiver of Utility Fees for Certain Property The engineer shall waive stormwater and surface water utility fees for a parcel falling within the following special categories of property upon a showing that the parcel meets the following applicable criteria for so long as the criteria are met. (1) Fees shall be waived for city streets and street rights -of -way, since they act as stormwater conveyance facilities during large floods The city streets fund also contributes to the proper operation, maintenance, repair, improvement, and construction of the street drainage system. (2) Fees shall be waived for state of Washington highway rights -of -way, so long as the state of Washington cooperates with the utility in the provision of services and maintains, constructs and improves all drainage facilities contained within such rights -of- way as required by the utility in conformance with all utility standards for maintenance, construction and improvement hereafter established by the utility and so far as such maintenance, construction and improvements shall be achieved at no cost to the utility or to the city (3) Fees shall be waived for municipal, county, and state and federal parks, fishing areas, wildlife reserves, public trails and bike paths so long as their owners cooperate with the utility in the provision of educational services and water quality control efforts Fees shall be waived to the degree that such property owners offset the costs of the utility to manage the burdens imposed by such parcels Parks, trails and bike paths have minimal intensity of impervious development and provide opportunities for natural resource education and development of an appreciation for water quality (4) Fees shall be waived for all vacant/undeveloped parcels The city council finds that such parcels generally have no improvements built on them, generate little to no traffic, utilize no chemicals, and generally are in a natural state, thereby imposing no burden upon the system and receiving no benefit from the utility's services and facilities Information that a property categorized as vacant or undeveloped is being used otherwise may result in a Toss of this waiver " Section 3. Section 7 80 130 of Chapter 7 80 of the City of Yakima Municipal Code is hereby amended to read as follows. "7.80.130 Property tax payers to pay fees. The property tax payer of each nonexempt parcel shall pay the stormwater user's fee and charges as provided in this chapter Property tax payers seeking adjustments or exemptions shall pay the full fee until such time that the adjustment or exemption is granted by the city " Section 4. Section 7 80 140 of Chapter 7 80 of the City of Yakima Municipal Code is hereby amended to read as follows 3 "7 80 140 Billing procedures and penalties for late payment. The charges as herein provided for shall be billed annually Annual stormwater charges totaling less than fifty dollars ($50 00) shall be due and payable on or before the thirtieth day of April of the billing year For annual stormwater charges totaling fifty dollars ($50 00) or greater, the first half of the total charge shall be due and payable on or before the thirtieth day of April of the billing year and the second half of the total charge shall be due and payable on the thirty -first day of October of the billing year Charges shall become delinquent thereafter if not paid. Finance charges and late payment penalties for delinquent accounts shall not begin to accrue until January first of the following year The owner of contiguous parcels having a single land use within the categories designated in YMC 7 80 100 may receive a single billing for such parcels Collection of delinquencies, interest, penalty, and costs of collection for delinquent utility service charges provided for herein shall be charged interest on the delinquent balance at the rate of five percent per annum, computed on a monthly basis. In addition to any other remedies permitted by law, the city shall have a lien pursuant to RCW Chapter 35 67, as currently enacted or hereinafter amended, for all delinquent service charges, including interest thereon, against the real property for which the service charges are calculated. Said lien shall have the superiority, and may be foreclosed upon, as described in RCW Chapter 35 67, as currently enacted or hereinafter amended, or other applicable law The engineer may excuse delinquencies of less than thirty days. The city treasurer may use the services of a collection agency to collect delinquent service charges in the manner and to the extent provided in RCW 19 16 500 as currently enacted or hereinafter amended The collection agency fee shall be added to the amount of the delinquent service charge. Costs associated with the foreclosure of the lien, including but not limited to advertising, title report, and personnel costs, shall be added to the lien upon filing of the foreclosure action In addition to the costs and disbursements provided by statute, the court may allow the city reasonable attomey's fees." Section 5. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance is declared invalid or unconstitutional for any reason, such decision shall not affect the validity of the remaining portions of this ordinance Section 6. 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 at a regular meeting and signed and approved this 20 day of November, 2007 ATTEST David Edier, Mayor City Clerk Publication Date. 11 -23 -07 Effective Date 12 -23 -07 4 Questions and Answers Concerning the Stormwater Program November 15, 2007 To City Council From Dick Zais — City Manager Dave Zabell — Assistant City Manager Randy Meloy — Surface Water Engineer Doug Mayo — Wastewater Manager Chris Waarvick — Public Works Director At the November 6, 2007 public hearing on the storm drainage and surface water management utility ordinance several speakers made comments or had questions Below is a listing of questions and answers to further your and the public's understanding of the issues Q Why not fund the Stormwater program by shifting costs from other City Divisions? A. Implementation of a stormwater rate will correct an existing "cost shift" For the past three years the cost of the stormwater program has been borne by Wastewater and Streets These budgets have advanced the Stormwater program $1 3 million to begin cleaning, mapping and assessing the storm sewer system Now that the NPDES Phase II permit and UIC mandates are in effect, the City must comply with the minimum requirements and will have to further increase spending to meet these requirements Stormwater is an enterprise fund and as such requires a stable funding source to implements its mission There is a ratepayer expectation that when they pay their sewer bill the funds are used to fund the sewer program All properties within the City are proposed to be assessed for stormwater However not all properties within the City are connected to sanitary sewer The storm sewer rate will correct an existing cost shift, the continuation of which would not be appropriate Q Why hasn't the City been maintaining the storm drain system? A. The City lacked the staffing and resources to conduct a regular stormwater maintenance program from within its existing resources. Given the City's budget limitations and the lack of any mandates to force the issue, the City chose to provide maintenance in emergency situations only With federal and state mandates now in play, deferred maintenance is no longer an option It needs to be noted that certain areas of the City, notably downtown, have received extensive drain box cleaning on a three or four year cycle over the past ten years Page 1 of 4 Q. The $18 rate is in the existing ordinance, why should it be changed? A. Not withstanding that the OTAK report, related rate recommendations, and ordinances in 2004, 2005 and 2006 (see attached) reference initial rates at $18 per ERU, significant work has been accomplished, a value engineering study of the OTAK report completed, a regional program established, and the NPDES and UIC regulations have come into effect. With this progress, and information available, many of the assumptions leading to the initial recommendations on rates, the $18 rate (and subsequent $9 per year ramp over up the subsequent 4 years) are no longer valid To assume the validity of these assumptions remain intact fails to recognize the progress made, the permit mandates in effect, and effectively delays compliance with state and federal law As background, in late 2005, the City Council engaged with other local partners (RSPG) to review the tasks, mandates, associated costs The record demonstrates that there was an expectation that the initial rate and subsequent rates would likely change from the OTAK recommendations This is not to say that the initial rate could not or should not be $18, in fact that is one of the options under consideration The underlying theme being that it was generally understood that the rates were in flux until the RSPG's work was completed It should also be noted that the permits will be in their second and third years in 2008 and the $18 rate was for work contemplated prior to or during the first year of the permit cycle. As a reminder, the original rates, established by ordinance in 2004, cite $18, $27 and $36 rates for 2005, 2006 and 2007 respectively This schedule was a recommendation of the OTAK report. Implementation was delayed to allow the City, Yakima County and others to form the Regional Stormwater Policy Group (RSPG). The RSPG conducted a value engineering study of the OTAK report to determine minimal compliance requirements, estimate implementation costs, and explore regional opportunities The conclusions of the RSPG efforts provide a much clearer picture of what a minimal compliance program looks like and associated costs As noted above, the $18 rate was a pre - permit introductory rate for 2005, with planned annual increases of $9 per year Since 2005 over $1 3 million has been advanced from the Waste Water and Street funds for stormwater related items, these funds must eventually be paid back. The deferral of the rate was discussed in Council meetings in 2004, 2005 and 2006 The October 18, 2005 Agenda Statement documents that stormwater program costs were not clear and the RSPG would oversee a value engineering study to look at the program The November 1, 2005 Agenda Statement seeks a deferment of stormwater fees due to the establishment of the RSPG At this meeting Clarence Barnett, Central Washington Homebuilders Association noted the $18 rate should be deleted for the present time as a value engineering study was to be completed and then a new rate structure should be reviewed and established by the City Council City Manager Dick Zais testified that that the "ordinance could be amended at any time in the future once additional information becomes known through the RSPG efforts" At Council's November 7, 2006 public hearing, Dick Zais advised the City Council that he had visited with Mr Barnett on the topic of stormwater rates and pointed out one rather significant factor, this being that when the initial ordinance was enacted it included a phased in schedule of anticipated rates that corresponded with the City's phased work program over a five year period, Page 2 of 4 noting that "In light of the value engineering work that was done this year and the anticipated cost reductions, those subsequent rate adjustments were eliminated, keeping only the first tier rate until the study and RSPG work is complete and the actual dollars that will be needed ultimately to fund this program are better known " The November 7, 2006 Agenda Statement once again deferred stormwater fees and notes the value engineering study is under way and that the degree of regional cooperation between the surrounding cities and county will be better understood, along with the program costs when the study is completed Q Why is such a relatively large increase from 2008 to 2009 needed? A. The driving factors for the increase are a stepped up work program (necessary to meet mandates), reimbursement of Wastewater and Streets, equipment needs, and capital program As noted in another question and answer, while the payback timing is somewhat discretionary, the equipment and stepped up work program are necessary to meet permit performance requirements 2009 mandates are to include staffing for the illicit discharge and detection, construction, and post construction inspection programs as well as beginning a capital program for UICs that present an imminent public health hazard Q If stormwater that falls on my property stays on my property, why am I charged a fee? A. The point to emphasize is that the stormwater system is a public program that benefits everyone in the City, and as such requires all property owners to contribute to its maintenance and operation Business owners feel they are being unfairly targeted because the fee is directly related to how much impervious area is on their property They have stated that if they keep all of the stormwater that falls on their property on site then they should not have to pay a fee What this argument does not take into account is that by simply having a business they are causing more traffic to use the public streets to reach their business This traffic deposits pollutants such as antifreeze, brake fluid, brake lining, exhaust particles, oil, tire particles and transmission fluid onto the roadway which is later washed into the storm drain system and ends up in our water bodies or groundwater The stormwater runoff is a public concern The systems in place to address runoff are publicly owned Our homes driveways, buildings, parking lots, streets and other impervious areas all contribute incrementally to a public problem that communities like Yakima have been mandated to address The ERU method of charging for stormwater is intended to be the best practical manner in which to assess properties for addressing the runoff issue so that relative to impervious surface, there is equity between what a small residential lot and a large commercial facility are charged Q Is this a minimal program? A. Yes. In 2007 the RSPG members formed a regional stormwater entity that will help lower costs by having the County take on several tasks such as public education, permit Page 3 of 4 reporting and administration The regionalization of these tasks creates an economy of scale for the partners The RSPG also conducted the value engineering study of the OTAK report that will result in savings of more than $5 million over the five year permit cycle There are two areas of the Stormwater budget that have some flexibility One is the reimbursement of funds to Wastewater and Streets. City Attorney Ray Paolella stated that while this money was not a formal loan or formal line of credit, there is an implied assumption to repay and a duty to repay under the State Accountancy Act. There was not a specific timeline for the repayment, though the Wastewater Cost of Service Study assumes reimbursement of $250,000 /year beginning in 2009 The second area is the Capital program The permits deal only with removing pollutants from stormwater and do nothing to address local flooding issues Any projects that address flooding issues are not required by the permits, but as stewards of the City we feel it is important that the citizens who pay the fees get some relief from these chronic flooding problems However, as noted above the UIC permit requires the City to spend Capital funds on retrofitting those UIC's (drywells) that are an imminent threat to public safety in 2009 (there are potentially thousands of them) and the NPDES permit will ultimately require the construction of stormwater retention facilities of some type at the outfalls located along Wide Hollow Creek and other locations to treat the stormwater before it enters into any body of water Q. Why are City streets exempt? A. The short answer is that the Street Division makes a significant contribution to the stormwater program in that they are tasked with street cleaning and BMP activities designed to improve water quality and prevent the introduction of sediments into the public stormwater system In 2008 it is anticipated that the Street Division will invest $425,000 for these activities Secondarily, per city ordinance a public storm sewer system is defined as a conveyance, or system of conveyances owned by a city having jurisdiction over disposal of stormwater The stormwater system discharges into waters of the United States (this includes groundwater as well as surface waters). Drywells, catch basins, inlets and storm sewer pipe are all part of the publicly owned conveyance system that takes the water from the roads and discharges it into either groundwater or surface water The Storm Drainage and Surface Water Management Utility is charged with maintaining this system, ergo the maintenance and inspection of drywells, catch basins, etc. appropriately falls under the umbrella of the stormwater program Page 4 of 4 Implementation of Federally Mandated Stormwater Program November 15, 2007 To Interested Parties From Dick Zais — City Manager Randy Meloy — Surface Water Engineer The City of Yakima formed a Stormwater Utility in 2004 to provide for and to fund activities necessary to meet federally mandated stormwater permit requirements and regulations These mandated requirements began in February 2006 when the mandated Underground Injection Control (UIC) rule was adopted by the Department of ecology, and further expanded on in February 2007 when the NPDES Phase 2 Permit (Title 33 United States Code Section 1251 et seq.) cycle started. Implementation of the intended financing mechanism for these programs has been deferred for the past three years. The cost of stormwater related activities to date have been subsidized by the City's Wastewater and Street Divisions. The City is approaching the third year of the UIC program and second year of the NPDES permit. The requirements of these two programs ramp over time, requiring the City to increase our efforts in these areas in order to achieve and maintain regulatory compliance Through several efforts, the City has spent considerable time and effort in determining what minimal efforts required to comply with these mandated stormwater regulations In 2003 OTAK completed a report on implementation of a city -wide stormwater management program Implementation of a city -wide stormwater fee has been subsequently delayed as the City engaged in a collaborative effort with other valley cities and Yakima County to explore altemative approaches A major part of that effort was the cities of Yakima, Sunnyside, Union Gap and Yakima County establishing a working group called the Regional Stormwater Policy Group (RSPG) Given the history of this issue and potential impact of these state and federal mandates on the community; participation, transparency and visibility were key priorities under the leadership of RSPG Co- chairs Neil McClure and Mike Leita. As such approximately seventeen well publicized and centrally located RSPG meetings were conducted and televised on YCTV, the City's government access cable channel Public input of the RSPG's work was encouraged and ultimately proved extremely valuable to the process The RSPG's first major effort involved conducting a Value Engineering (VE) Study of the OTAK Report, which was conducted by HDR and commenced in 2006 Included in this effort was an analysis of the updates to the NPDES Stormwater Discharge Permit. Several of these updates served to delay implementation and impact of Permit requirements Under the guidance of the RSPG, the VE Study entailed a thorough analysis of the efforts mandated through the NPDES permit and which of those tasks would be beneficial to regionalize and which tasks should appropriately remain the Page 1 of 4 responsibility of the respective agencies The VE Study results were presented with a PowerPoint presentation at the April 3, 2007 Council meeting In July 2007, a regional stormwater entity was formalized through an Interlocal Agreement (ILA) between the RSPG cities and County Yakima County was identified as the Lead Agency of this regional group The regional stormwater entity is a creation of the RSPG and is formalized through the ILA. While the individual agencies remain responsible for their publicly owned stormwater infrastructure, the County will take on several tasks such as public education, permit reporting, and administration The regionalization of these tasks creates an economy of scale for the partners. With the culmination of these various efforts, the City's RSPG representatives, Council Members McClure and Lover, with the assistance of city staff, have assembled financing and rate options for the stormwater program. In summary those options are as follows: Option A No Action - The stormwater rate would remain at $18 /ERU and go into effect January 1, 2008 per the existing ordinance. This would sufficiently fund year three UIC and year two NPDES activities at a level meeting the minimum requirements. This rate would not however provide for any level of reimbursement for prior Wastewater and Street subsidies, or generate any significant funds toward needed capital improvements. Rates would have to see dramatic increases in subsequent years to meet permit requirements. Program Elements 2008 Expenditures. Regional Management (County) $225,082 Annual Billing to Yakima County $30,000 FTEs and BMPs $528,044 Equipment $60,000 Capital Program $20,000 Reimburse Streets $0 Reimburse Wastewater $0 Reserves (initial) $869 Total Program Expenses $864,000 Revenues: Proposed Rate (Annual) $18.00 Proposed Rate (Monthly) $1.50 Projected Revenue $864,000 .Available for Capital /Reserves $0 Option B Flat Rate Proposal — Repeal the $18 /ERU rate and establish a three -year flat rate of $35 /ERU for 2008, 2009 and 2010. This rate would sufficiently fund the mandated regulatory requirements of the UIC and NPDES laws over the next three year permit horizon. As proposed, repayment of the prior subsidies from Wastewater and Streets would be delayed until 2009, and would then continue for the next Page 2 of 4 several years. Significant dollars would be generated to establish a robust Stormwater Capital Program of $200,000, $350,000, $600,000 in years 2008, 2009 and 2010 respectively Program Elements 2008 2009 2010 Expenditures: Regional Management (County) $225,082 $222,458 $250,000 Annual Billing to Yakima County $30,000 $30,000 $30,000 FTEs and BMPs $528,044 $772,285 $796,354 Equipment $60,000 $100,000 $100,000 Capital Program $200,000 $350,000 $600,000 Reimburse Streets $0 $25,000 $25,000 Reimburse Wastewater $0 $250,000 $250,000 Reserves (initial) $1,874 $50,000 $50,000 Total Program Expenses $1,045,000 $1,799,743 $2,101,354 Revenues. Proposed Rate (Annual) $35.00 $35.00 $35.00 Proposed Rate (Monthly) $2.92 $2 92 $2.92 Projected Revenue $1,680,000 $1,722,000 $1,765,050 Available for Capital /Reserves $636,874 $609,131 $322,287 Option C Graduated Rate Proposal - Repeal the $18 /ERU rate and establish a rate schedule providing for a 2008 rate of $22/ERU and increasing the annual rate to $37 effective January 1, 2009 Similar to the Option B this proposal would sufficiently fund the mandated regulatory requirements of the UIC and NPDES laws over the next three year permit horizon. As proposed, repayment of the prior subsidies from Wastewater and Streets would be delayed until 2009, and would then continue for the next several years. Significant dollars would be generated to establish a robust Stormwater Capital Program, though less than what is projected under Option B. Program Elements 2008 2009 Expenditures: Regional Management (County) $225,082 $222,458 Annual Billing to Yakima County $30,000 $30,000 FTEs and BMPs $528,044 $772,285 Equipment $60,000 $100,000 Capital Program $200,000 $350,000 Reimburse Streets $0 $25,000 Reimburse Wastewater $0 $250,000 Reserves (initial) $1,874 $50,000 Total Program Expenses $1,045,000 $1,799,743 Revenues: Proposed Rate (Annual) $22.00 $37 00 Proposed Rate (Monthly) $1 83 $3 08 Projected Revenue $1,056,000 $1,820,400 Available for Captial /Reserves $12,874 $70,657 Page 3 of 4 Option D Graduated Rate Proposal — Leave the $18 /ERU rate in place for 2008 and establish a rate schedule providing for a 2009 rate of $27 /ERU and increasing the annual rate to $37 for 2010. This option would sufficiently fund the mandated regulatory requirements of the UIC and NPDES laws over the next three year permit horizon. As proposed, repayment of the prior subsidies from Wastewater and Streets would be delayed until 2010, and would then continue for the next several years. Program Elements 2008 2009 2010 Expenditures: Regional Management (County) $225,082 $222,458 $250,000 Annual Billing to Yakima County $30,000 $30,000 $30,000 FTEs and BMPs $528,044 $772,285 $796,354 Equipment $60,000 $100,000 $100,000 Capital Program $20,000 $200,000 $364,556 Reimburse Streets $0 $0 $25,000 Reimburse Wastewater $0 $0 $250,000 Reserves (initial) $874 $0 $50,000 Total Program Expenses $864,000 $1,324,743 $1,865,910 Revenues: Proposed Rate (Annual) $18.00 $27 00 $37.00 Proposed Rate (Monthly) $1 50 $2.25 $3 08 Projected Revenue $864,000 $1,328,400 $1,865,910 Available for Capital /Reserves $874 $3,657 $50,000 The implementation of this program and the attending rates are a Council public policy issue. The information contained in this packet describes the different funding options in much greater detail as well as other information about the Stormwater program in general and forms the basis of the proposed recommendations. We anticipate this information will be critical as you consider public input at the November 20, 2007 public hearing and deliberate on this complex issue Page 4 of 4 TABLE 2 - OPTION D CITY'S STORMWATER PROGRAM 2008 - 2010 Budget Proposal Program Elements 2008 2009 2010 Option D (see footnote 1) (see footnote 1) Expenditures: Regional Management (County) $225,082 $222,458 $250,000 Annual Billing to Yakima County $30,000 $30,000 $30,000 FTEs and BMPs $528,044 $772,285 $796,354 FTEs (SEE TABLE 3) 5 46 8 96 8 96 Equipment $60,000 $100,000 $100,000 Capital Program $20,000 $200,000 $364,556 Reimburse Streets (SEE TABLE 4) $0 $0 $25,000 Reimburse Wastewater (SEE TABLE 4) $0 $0 $250,000 Reserves (initial) $874 $0 $50,000 Total Program Expenses $864,000 $1,324,743 $1,865,910 Revenues: Average ERU $18 00 $26 93 $37 00 Proposed Rate (Annual) $18.00 $27 00 $37 00 Proposed Rate (Monthly) $1 50 $2.25 $3 08 ERUs 48,000 49,200 50,430 Projected Revenue $864,000 $1,328,400 $1,865,910 Savings /(Loss) $0 $3,657 $0 Reserves (final) $874 $3,657 $50,000 Footnote 1 The budget projections for 2009 and 2010 are estimates based upon the assumption that a rate of $28 per ERU for 2008 was used A lower rate for 2008 may cause future rate increases to be more severe as minimal compliance would require a more accelerated program. BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT 1 L Cll l L 4 V For Meeting of November 23, 2004 ITEM TITLE. Public Hearing on Legislation Creating a Stormwater Utility and a Request for Action SUBMTI°l "ED BY Chris Waarvick, Director of Public Works CONTACT PERSON /'TELEPHONE. Brett Sheffield, P.E. Surface Water Engineer, (509) 576 -6797 SUMMARY EXPLANATION This Pubhc Hearing is to present a Joint Stormwater Utility Ordinance between the cities of Yakima and Union Gap and Yakima County that creates legislation that would establish a Storm Drainage and Surface Water Management Utility ( Stormwater Utility) The purpose of the Stormwater Utility would ultimately be to provide for compliance with State and Federal environmental law by providing stormwater programs and other services, stormwater facilities, and a funding source for the utility's revenue requirements. The Department of Ecology has stated that it is their intention to include, along with the mandates of the Clean Water Act, requirements denved from the Safe Drinking Water Act (UIC), Endangered Species Act (ESA), and water cleanup plans (TMDLs) pertaining to stormwater into the general pernut. Therefore, the proposed (Continued on Page Two) Resolution Ordinance X Other (Specify) Attachments Contract Mail to (name and address) Phone. Funding Source Interfund loan f005 APPROVED FOR SUBMITTAL. City Manager STAFF RECOMMENDATION Staff respectfully requests that Council. A) conduct the Public Heanng on November 23, 2004 reviewing the proposed joint legislation establishing a Stormwater Utility and associated fees, and B) for Council to adopt the ordinance as presented with the fee schedule beginning in 2006 BOARD/ COMMISSION RECOMMENDATION COUNCIL AC:l ION Page Two Stormwater Program and Utility mandated by state and federal law intends to address all _ _ — of these reou_Lretnents After receiving direction from - Council in September 2004, staff created a Joint Stormwater Utility Ordinance with Yakima County and the City of Union Gap to the degreepossible given current state 1law This agenda packet includes • A memorandum from Konrad Liegel of Preston, Gates and Ellis, • The Joint Stormwater Utility Ordinance, • Comments received during the Public Hearing process and associated responses, and • A CD containing the Stormwater Management Manual for 'Eastern Washington (SMA/IEW), and copies of the :einails from the Department of :Ecology -(DOE) announcing the pilblication.of the final version of the smr.myv, • An email from Bill Moore of the DOE addressing the timmg of the.:impendmg National Pollutant Discharge Elimination System (NPDES) Phase IT Stormwater Permit. - Copy of the Notice of Intent filed by the City in March 2003 to apply for the NPIDES Phase ripen:rut once-it is ayailable. • Copy of the .Council:Decisions regarding the Stormwater Policy Elements. The memorandum from Konrad Liegel describes the legal: basis and cuirent,lurutations for full regionalization of a stormwater utility between Yakima County and the cities and the necessary steps that need to be talcenifdiTaChieVirig fulkregionalization. The joint .ordthance was created so as many aspects of the .stormwater management program would be the same as possible, initially, throughout the Yakima Valley so that the program-would reflect the ---desired ; regional approaCh. This addresses the suggestion heard many times d the public ;hearings. Other -changes made to the ordinanCe aSa result public comment include: • Establishing utility rates for only the first three years of the utility as , opposed to the first five years. Rates are $18/year per ERU iri year 1, .$27/year per ERU m year 2, and '$36/year per ERU in year 3, • The definition of stormwater was Changed to match the definition provided in the Stormwater Management Manual for Eastern Washington, • Minor verbiage changes to make it read more easily; and • Delaying the date that stormwater fees go into effect within the City of Yakima until January 1, 2006 to more closely align with the issuance of the NPDES Phase Page Three II permit - yet still offer some protection from third party liability under the Clean Water Act. Public comments were given and /or written comments were received at the City of Yakima Stormwater Utility Public Hearing on May 18, at the Board of County Commissioner's Stormwater Utility Public Hearing on May 24, at the Joint Stormwater Utility Public Hearing on June 1, and the August 17 City of Yakima Stormwater Public Hearing Although some of the comments about the County's proposed utility do not necessarily pertain to the City, there are enough overlapping elements that they are included as a part of this packet. On September 29, the Department of Ecology sent out an email stating that the Stormwater Management Manual for Eastern Washington (SMMEW) was being prepared for final printing. This email was followed with an October 25 email stating that the SMMEW was available on Ecology's website. The City received its complimentary copy of the SMMEW during the first week of November A CD containing the SMMEW is included with this packet. Chris Waarvick requested from Bill Moore information related to the timing of the Phase II permits. His response is included. It appears that the final Eastern Washington Phase II permit will be published near the end of 2005, at which time we will need to submit an application. The first five -year permit cycle begins when we send in our application. The Notice of Intent (NOI) that was filed with the Department of Ecology lists many of the elements that will need to be incorporated into our stormwater management plan. Additional required elements have been listed in the Model Municipal Stormwater Program for Eastern Washington. During the first half of this year, Council met to discuss, review and eventually decide on various policy issues surrounding the proposed stormwater utility The attached spreadsheet shows the issues and Council's decisions. The City of Uruon Gap is going to have a Public Hearing on the proposed Joint Stormwater Utility Ordinance on November 22, 2004. The Board of County Commissioners has recently elected to postpone their decision with regard to formation of a Stormwater Utility until further public participation and recommendations of a yet to be established "citizen task force." Although this could also be an option for the City, it must be considered very carefully At two different times (mid 1990s and recently), the issue of funding a stormwater management Page Four I program to meet federal and state mandated regulations has been studied by joint City - County planning efforts. Both times, the recommendation has been to establish a stormwater utility with about the same rates (1990s -$6 /month per ERU, Recently-. phase in rates beginning at $1.50 /month per ERU up to $4.50 /month per ERU over several years) Over $1 million have been spent on these two studies. Any additional studies will require more money that we do not have currently, with most likely the same or very similar results unless state or federal law changes. Recent citizen -based lawsuits have been brought upon Washington cities (Bellevue and Vancouver) stating that they are in violation of the Clean Water Act because they are discharging stormwater to surface waters without a permit. Even though the Department of Ecology, which has primacy over water quality issues for the State of Washington, has yet to provide a permit for Phase II communities to seek coverage under, the lawsuits would be based on the Environmental Protection Agency (EPA) deadline of March 10, 2003 After hearing of this, Yakima approached the Department of Ecology (DOE) with the request that DOE indemnify the City of Yakima during the period of federally required compliance with the Phase II regulations and the actual issuance of the permit. DOE's response was that the State is not in a position to do this, and this is consistent with past DOE discussions on this topic. Accordingly, there is potential exposure to third party litigation and liability to communities based upon the EPA regulatory deadline, in the absence of any formal action to irutiate compliance efforts. Recommendations Staff respectfully requests that Council. A) conduct the Public Hearing on November 23, 2004 reviewing the proposed joint legislation establishing a Stormwater Utility and associated fees; and B) for Council to adopt the ordinance as presented with the fee schedule beginning in 2006 Approving the stormwater ordinance as presented with fees beginning in 2006 for the mandated stormwater management program demonstrates to the public, DOE and EPA that Yakima is preparing to comply with the forthcoming permit; thus reducing potential liability exposure, yet being sensitive to the timing of the fees required to start compliance in earnest. Therefore, if Council desires to approve the staff recommendations above, the Stormwater Policy Issue (b) (minimal stormwater activities) in the 2005 Preliminary Budget would be amended to reflect the passage of the ordinance. While the ordinance creating the utility would be approved, fees would not be implemented until 2006 and $172,000 would be borrowed from the Wastewater Division in 2005 to support minimal program activities. Page Five Since fees will not be billed nor collected until 2006, Inter -Local Agreement #2, which provides for Yakuna County to bill and collect the fees for the City, can come at a later date BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No /1 I J For Meeting of October 18, 2005 ITEM TITLE. Set date of Public Hearing for 2:00 pm on November 1, 2005, in City Council Chambers to consider legislation deferring Stormwater Utility fees SUBMi 1 1 BY Chris Waarvick, Director of Public Works CONTACT PERSON/TELEPHONE. Brett Sheffield, P.E. Surface Water Engineer 509 /576 -6797 SUMMARY EXPLANATION This action would set November 1, 2005 as the date for a Public Hearing regarding legislation to defer implementing Stormwater Utility fees until January 2007 Although Council approved the stormwater utility ordinance last year, which would implement stormwater utility fees in January 2006, two general concerns voiced by the public were: 1) the program and costs are not understood, and 2) a consohdated, regional approach could reduce redundancy of effort and be more efficient. In response to this, a regional stormwater policy group (RSPG) has been formed consisting of elected officials from Yalama, Yakima County, Umon Gap, Moxee and Surmyside. One of the first t2cira to be performed by the RSPG will be to oversee a Value Engineering Study of the cu rent draft of the stormwater management )1 program. Since this review of the proposed program will not happen until next year and the general permit will not be issued until at least June of 2006, staff recommends defemng fees until January 2007 Resolution Ordinances X Other (Specify) Public Hearne Set Date: Consolidation Report Excerpts Contract Mail to (name and address) : Phone: Funding Source: APPROVED FOR SUBMITTAL. � a City Manager STAFF RECOMMENDATION Staff respectfully requests the City Council to set November 1, 2005, as the date of Public Hearing to consider legislation delaying the charging of Stormwater Utility fees. BOARD /COMMISSION RECOMMENDATION COUNCIL ACTION November 1, 2005 was set as the date of public hearing. BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No For Meeting Of November 1, 2005 ITEM TITLE. A) Public Hearing on Legislation deferring Stormwater utility fees, B) Council action on ordinance amending and deferring Stormwater utility fees, C) Resolution authorizing execution of Interlocal Agreement with Yakima County and the cities of Union Gap, Sunnyside, Moxee and Yakima for continued cooperation in planning for regional Stormwater compliance, and D) Resolution approving submittal of Stormwater Grant Application from the Washington State Department of Ecology SUBMITTED BY Chris Waarvick, Director of Public Works CONTACT PERSON/TELEPHONE. Brett Sheffield, 576 -6797 SUMMARY EXPLANATION (A and B) This Public Hearing concerns an ordinance deferring stormwater utility fees until January of 2007 Last November, Council approved ordinance number 2004-73, which established a stormwater utility This ordinance stipulated that stormwater fees would begin in January of 2006 Due to continued efforts to establish a regional stormwater management plan with the County and adjacent cities, and expectant mid -year 2006 arrival of the National \\ Pollutant Discharge Elimination System (NPDES) Phase II eastern Washington general permit, staff recommends that the City defer imposition of these fees until January 2007 (continued on next page) Resolution 2 Ordinance 1 Other (Specify) Contract Mail to (name and address) Phone Funding Source APPROVED FOR SUBMITTAL. '� �� City Manager STAFF RECOMMENDATION: Staff respectfully requests that Council. A) conduct the Public Hearing on November 1, 2005 deferring stormwater utility fees until January 2007, B) adopt the Stormwater utility ordinance amendment as presented, C) approve the resolution concerning the Interlocal Agreement with other local jurisdictions to apply for a special partnership grant from Ecology; and D) approve the resolution concerning the joint Ecology grant application. BOARD /COMMISSION RECOMMENDATION COUNCIL ACTION Page Two At that time, the requirements of the stormwater management plan will be more clearly defined and the degree of regional cooperation will be more fully understood. (C and D) Through the 2005 state legislature, the Department of Ecology has $2.7 million in grant money available to help Phase II communities start their stormwater management programs Ecology decided to allocate $75,000 each to the 32 jurisdictions that they determined to be the most economically challenged. The cities of Yakima, Union Gap and Sunnyside are included in the list of 32. Yakima County is not. In an effort to obtain an additional $75,000 of funding for the regional Yakima area, the cities of Yakima, Union Gap, Sunnyside and Moxee and Yakima County propose to apply for a special partnership grant, with Yakima County acting as the lead agency for this grant. The Department of Ecology indicated that some form of agreement between the parties of the joint grant application is necessary to accompany the grant application. Once and if approved, Ecology would negotiate further the particulars of the grant in more detail than contained in the application. The Regional Stormwater Policy Group (RSPG), which consists of elected officials from Yakima County and the cities of Yakima, Union Gap, Sunnyside and Moxee, have met three times over the last two months The attached Interlocal Agreement and joint grant application are direct products of this regional cooperation. Two items of note are 1) the joint grant application also requests an additional $200,000 of discretionary funds, since the regional program to be developed could be used as a template for other groups of phase II communities, and 2) if Ecology doesn't select our joint grant application, the City would still receive its $75,000 BUSINESS OF THE CITY COUNCIL YAKIM.A, WASHINGTON AGENDA STATEMENT Item No a For Meeting of November 7, 2006 ITEM TITLE. A) Public Hearing on Legislation deferring Stormwater utility fees, and B) Council consideration of an ordinance amending and deferring Stormwater utility fees SUBMITTED BY Chris Waarvick, Director of Public Works CONTACT PERSON/TELEPHONE. Brett Sheffield, P.E. Surface Water Engineer 509/576 -6797 SUMMARY EXPLANATION (A and B) This Public Hearing concerns an ordmance deferring stormwater utility fees until January 2008 In anticipation of new stormwater regulations, Council approved the stormwater utility ordinance in 2004 with the scheduled collection of fees to begin in 2006 Last year, the Council voted to defer the collection of stormwater utility fees until 2007 The Regional Stormwater Policy Group, consisting of elected or authonzed representatives from Yakima County, Umon Gap, Moxee, Sunnyside and the City of Yakima have been meetmg ever since. Using a Department of Ecology grant, a Value Engineenng study of the currently proposed stormwater plan has been engaged, and significant progress has been made in evaluating the plan and reducing associated costs. Due to continued efforts to establish a regional stormwater management plan, staff recommends that the I City defer imposition of these fees until January of 2008. At that time, the degree of regional l cooperation between the surrounding cities and county will be better understood, along with the program costs. The base rate of the ordinance has been modified to only show how the beginning rate Resolution Ordinances X Other (Specify) Contract Mail to (name and address) Phone Funding Source: APPROVED FOR SUBMITTAL. ( -- - ? -,� ‘ City Manager STAFF RECOMMENDATION Staff recommends that the City Council A) hold the Public Hearing; and B) subsequent to the public hearing and any public comment and deliberation, act by ordinance to defer collecting Stormwater Utility Fees until January, 2008 BOARD /COMMISSION RECOMMENDATION COUNCIL ACTION Ordinance passed. ORDINANCE NO. 2006 -55 Storm Water meeting Page 1 of 2 Meloy, Randy From: Meloy, Randy Sent: Wednesday, November 07, 2007 1011 AM To: 'admin@fairfun.com' Cc: Zais, Dick Subject: FW Storm Water meeting Importance. High Greg Dick Zais asked me to reply to your questions sent by e-mail 11/6/07 concerning stormwater The public hearing was well attended Citizens speaking about the issue included Bill Wheeler, Mike Morrisette, Trent Marquis, Brad Christianson and Clarence Barnett. 1) I would like to keep the initial rate at the original $18 with the idea of getting into a new program slow and easy Several of the speakers shared your sentiment on this. As you know there are several rate options being considered with different rates and for varying numbers of years. Council will debate the issue further at the November 20 Council meeting. 2) I have to wonder why there is $500,000 maintenance for drywells when in my mind they should be under the Road maintenance's budget A storm sewer system is defined as a conveyance, or system of conveyances owned by a city having jurisdiction over disposal of stormwater that discharges to waters of the United States (this includes groundwater as well as surface waters). brywells, catch basins, inlets and storm sewer pipe are all part of the conveyance system that takes the water from the roads and discharges it into either groundwater or surface water The Storm Drainage and Surface Water Management Utility is charged with maintaining this system. Using this logic one can see how the maintenance and inspection of drywells, catch basins, etc. would fall under the umbrella of the stormwater program. The Street Division does their part to improve water quality and stormwater by cleaning the streets and has budgeted $425,000 in 2008 for these activities 3) Another option is to go to $35 - $37 rate and cap it at $5000, sort of a bulk discount In 2004 the City Council debated the idea of placing a cap on the maximum amount that a business will pay, regardless of the number of ERU's they have. The City Legal Department informed us there can be no cap placed on a fee. This is different from a tax, which can have a cap After debating this issue the Council voted unanimously to not have a cap If you have any further questions or if I may be of assistance, please do not hesitate to call Randy Meloy, PE Surface Water Engineer City of Yakima 11/15/2007 COUNCIL INFORMATION Implementation of Federally Mandated Stormwater Program and Financing Plan November 6, 2007 To Honorable Mayor and City Council From Councilman McClure, RSPG Co -chair Councilman Lover RSPG Member History: Subsequent to a public hearing held on May 18, 2004 the Yakima City Council adopted legislation establishing a Stormwater utility and rates The rates presented in that legislation were supported by the findings and conclusions of the 2003 OTAK Report. Implementation of a city -wide stormwater rate has been subsequently delayed as the City engaged in a collaborative effort with other valley cities and Yakima County to explore alternative approaches to achieving compliance with mandated and evolving water quality requirements A major part of that effort was the cities of Yakima, Sunnyside, Union Gap and Yakima County establishing a working group called the Regional Stormwater Policy Group (RSPG) The RSPG's first major effort involved a Value Engineering (VE) Study of the OTAK Report, which was conducted by HDR and commenced in 2006. Included in this effort was an analysis of the updates to the National Pollutant Discharge Elimination System (NPDES) Stormwater Discharge permit. Several of these updates served to delay implementation and impact of permit requirements Under the guidance of the RSPG, the VE Study entailed a thorough analysis of the efforts mandated through the NPDES permit, which of those tasks would be beneficial to regionalize and which tasks should appropriately remain the responsibility of the respective agencies During the course of the study, in February 2007, the City received its stormwater NPDES Permit (Item 14 in appendix) This started the clock on what is known as the 6 +2 requirements In July 2007, a regional stormwater entity was formalized through an Interlocal Agreement (ILA) (Item 11 in appendix) between the RSPG cities and County Yakima County was identified as the Lead Agency of this regional group The regional stormwater entity is a creation of the RSPG and is formalized through the ILA. While the individual agencies remain responsible for their publicly owned stormwater infrastructure, the County will take on several tasks such as public education, permit reporting, and administration, the regionalization of these tasks creates an economy of scale for the partners. Each member is to reimburse the County for these regional efforts Cost allocations were established based upon consideration of factors including population, area and infrastructure within the respective jurisdictions The City has 86% of all storm drain pipe, 87% of all catch basins and 95% of all dry wells within the region (see Table 5) The City's allocation of the Regional effort is 70 %, to be paid to the County each year Page 1 of 7 While the County is the lead and responsible for several mandated items including submission of the Annual Report, also described in the VE report and the ILA is what is called the "Cost of Admission" for each member Responsibilities and obligations that remain for each member include all work related to existing infrastructure such as mapping, cleaning, and assessment and all capital improvement projects Due to limited resources the City has been unable to properly maintain its existing stormwater infrastructure and little has been done to relieve site - specific flooding situations We are now well into the first year of the NPDES Permit cycle (permit issued February 16, 2007 — Item 14 in appendix) and in the second year of the Mandated Underground Injection Control (UIC) program (mandated DOE rule adoption February 3, 2006 — Items 15 and 16 in appendix) As noted above, the financing mechanism for this mandated program has been deferred for three years. The City's Wastewater Utility has supported a sub - minimal exploratory effort toward the stormwater program's requirements With federal mandates now in effect and the need to comply with the Washington State Accountancy Act it is time for this program to expand to a level that will meet minimum permit requirements and to be financially self- sufficient. On a related topic, Yakima County is presently considering legislation on an ordinance to create a County Stormwater Utility to serve the unincorporated portions of the County within the urbanized areas, and plan on bringing this to a vote of the County Commissioners by the end of the year City staff attended a recent County study session concerning their ordinance One option the County is considering is to charge $0 for 2008, $15 for 2009 and $29 for 2010 Their proposed expenditures for 2008 are $193,000 and will be covered using existing resources and grants Their plan does not include a Capital Program for this three year period Waivers will be granted only for County and State roads and facilities Credits for businesses and for rain harvesting are identical to the City of Yakima ordinance The County does not intend to provide credits to low income seniors or low income disabled persons. For residential dwellings every single family residence will be charged one Equivalent Residential Unit (ERU) Commercial /industrial is the same as ours with the total impervious surface being divided by 3600 square feet. Agricultural lands vary and the County has developed a rate table based on size of parcel The City does not have Agricultural zoning to determine ERU charges Policy Directions and Assumptions. in preparation of this report and the following financial considerations, the following policy decisions and assumptions were considered, 1 Self - Sufficient Enterprise Fund - The Storm Drainage and Surface Water Management Utility, created by council through Ordinance 2004 -73 is to be a self- supporting enterprise fund, required to generate revenues through user fees rather than from property taxes or other utility or non - utility sources. 2 Waivers and Exclusions - The basis for waivers, credits and exclusions are from Council policy decisions of March 16, 2004 (Item 4 in appendix) 3 Compliance with Federal Mandates - The City, through its Stormwater Utility, will meet its mandated NPDES permit requirements Page 2 of 7 4 Regional Cooperation - The City intends to remain a party to the "regional" program lead by Yakima County 5 Capital Improvement Needs — Rates should be set to generate sufficient revenue to begin a modest capital program to meet mandatory system improvements and . to correct system deficiencies causing localized flooding and property damage 6 Washington State Accountancy Act — The City will comply with the Act in the management of this Utility The stormwater financing plan should be designed to reimburse the Street and Wastewater Divisions for their past subsidy of stormwater related activities Financial Considerations. An analysis of the costs required to carry out the minimal stormwater program for 2008 under the City's NPDES Phase II Permit, UIC regulations, and local expectations was completed A comparison of these costs to what could be done using the rate in the existing ordinance is included in this packet - see Table 2. The major expenditure categories can be broken up into six areas 1) Regional Management— Per the ILA, Yakima County is the lead for the Regional Stormwater Policy Group and they have indicated their estimated budget for 2008 is $322,000 The City of Yakima will pay 70% of this amount = $225,000 In addition, Yakima County is poised to provide billing services to the City 2) FTEs and Local BMPs — the City's Stormwater program has budgeted 5 46 FTEs for 2008 to continue developing the stomiwater management program and to implement local best management practices such as mapping, assessing, and cleaning our existing infrastructure (there are currently 3 35 FTEs dedicated to stormwater activities) The FTEs include the Surface Water Engineer, a full -time crew (2 FTEs) to service existing infrastructure, and partial FTEs of various personnel in the Engineering and Wastewater divisions City service charges and insurance are also included. Cost = $528,044 3) Equipment — $60,000 is needed to purchase a 3/4 -ton full size pickup and a small truck. 4) Capital Program — meeting the minimum requirements of NPDES Phase 2 and UIC only provides for treatment of stormwater A capital program is necessary to perform mandated system improvements but also to address needed drainage improvements These capital projects will alleviate some of the chronic flooding problems encountered in the city Funding limits for the Capital program varies among the three options presented 5) Reimburse the Street Division — in 2003 and 2004, the Street Division in the amount of $143,000, sponsored the fledgling Stormwater Program. Under Option A this item would be deferred until 2009 Under option B there would be no Page 3of7 reimbursement in 2008 while a reimbursement of $25,000 would be scheduled for 2009 and 2010 Option C would have no reimbursement in 2008 but would reimburse $25,000 in 2009 (See Table 2) 6) Reimburse the Wastewater Division — from 2005 through 2007, Wastewater subsidized the initiation of elements of the federal, state, and locally mandated Stormwater program by fronting it a total of $1 29 Million In 2008, Wastewater will loan Stormwater an additional $300,000 for the purchase of a Vactor truck used in cleaning catch basins. The amount borrowed will be paid back over six years Under Option A this item would be deferred until 2009 Under Option B, there would be no reimbursement in 2008 while a reimbursement of $250,000 would be scheduled for 2009 and 2010 Option C would have no reimbursement in 2008 but would reimburse $250,000 in 2009 (See Table 2) Evaluation of Project Costs. The "Cost of Admission" makes it difficult to have an "apple to apple" comparison of stormwater costs between the Draft Plan, Value Engineering Study and present needs The Draft Plan and Value Engineering Study both assume that the City already had a fully mapped stormwater system in reasonably good condition. Unfortunately, that is not the case. The City is presently mapping the system and has borrowed a crew from Wastewater for the past three years to begin cleaning the catch basins and inlets This sub - minimal program has been an exploratory task to allow the City to get better information on current and future mandated program staffing and equipment requirements As noted in #6 above, Stormwater will be reimbursing Wastewater at the rate of $250,000 per year for at least the next six years The cost to continue to clean the system and get it into reasonably good condition will take years and cost approximately $500,000 per year in 2008 dollars These items represent $750,000 in annual expenses that are not accounted for in the Draft Plan and Value Engineering Study As indicated on the enclosed Table 1, the expenses for the (2005 -2007) City's Stormwater Program have been considerably less than originally projected resulting in a savings /deferral of $2,759,036 Depending upon which rate proposal is selected, savings /deferrals through 2010 would be between $5,691,986 and $6,006,146. These "savings" are from three sources, 1) the utilization of the Regional approach to eliminate redundancy, 2) by being both efficient and effective in the tasks performed, 3) the actual permit delayed the schedule on many items from what earlier drafts had indicated. The costs for several elements will now impact future budgets as those tasks were only delayed, not eliminated With the delayed implementation schedule, the mandated program obligates the City to considerable effort in the years ahead, in addition to local safety needs such as site - specific flood control issues Rate Options. Based on what we have leamed through our efforts and production rates over the past 14 months, our current level of activity will not allow the City to meet the Permit Page 4of7 timelines We also realize that the rate proposed in 2005 and currently in the Ordinance (Option A) does not provide adequate revenue to fund a "minimal" program, support the Regional effort, provide for reimbursement, and support a modest Capital program (flood control) As noted in the Agenda Statement, when rates were proposed in the November 2005 public meeting, it was stated that the program and costs would require re- examination after more data was known. On Table 2, a proposed 2008 budget containing six program elements and their associated costs have been summarized The proposed total budget for the Stormwater program in 2008 is $1,045,000 The projected number of Equivalent Residential Units (ERUs) in the city that can be billed is 48,000 An ERU is equivalent to a parcel having 3,600 square feet of impervious surface, which was found to be that of an average house in Yakima. Mandatory permit requirements will force the City to hire more staff and increase program costs in subsequent years Option A, which is the $18 rate in the existing ordinance, has a total budget of $864,000 Rates for 2009 and 2010 would be determined later and would require Council approval Option B presents a scenario that institutes a flat rate of $35 to be used for 2008, 2009 and 2010 Option C presents a $22 rate for 2008 and a $37 rate for 2009 Under Option C the rate for 2010 would be determined in 2009 and would require Council approval The requested annual rates presented in Options B and C represents a substantial decrease from the suggested rates in the Draft Plan and Value Engineering Study when all costs are considered. If adopted, the City would be able to continue making modest progress in meeting the minimum requirements of the NPDES Phase II and UIC permits, begin reimbursing the Wastewater program and funding for a few minor capital program projects These activities represent the minimum mandated effort. In comparison, the OTAK recommended annual rate for the first year (2005) was $18, for year two (2006) was $27, for year three (2007) level activities was $36 Due to deferrals, the 2005, 2006, and 2007 actual rate specific to this Utility has been zero ($0 00) By relying on funding borrowed from the wastewater utility, we have managed a sub - minimal exploratory program Our 2007 effective rate (expenditures /ERU) is $14 Future Considerations. Although some of the mandated permit deadlines are yet 3 - 4 years away, we believe it prudent to plan a balanced effort to meet these goals. Based upon production experienced over the past year, we realize that at least one additional crew is required by 2009 for the "cleaning, assessing, mapping" element. The proposed budget and required utility fees for 2009 and 2010 are provided in Table 2 The program requirements and progress will be continually monitored with regular reports presented to Council Page 5of7 Council Options Option A — No Action The stormwater rate would remain at $18 per the existing ordinance. This will have the following impacts The City will be able to meet the minimum requirements towards the permits for 2008. There would be no reimbursement for Wastewater and Streets. The Stormwater Capital Program for 2008 would be minimal at $20,000. Future rate increases would have to be accelerated to meet permit requirements. It has been suggested in Option A that the Stormwater expenses not be decreased, rather the revenue gap be filled by not excluding the Street Division from paying stormwater fees for City streets and sidewalks. In order for this to happen, the Council policies established in March 2004 would require amending, furthermore, this would require a significant adjustment to the Street Division budget. Option B — Flat Rate Proposal Establish a stormwater rate of $35 and use this rate for 2008, 2009 and 2010 This will have the following impacts. The City will be able to meet minimum requirements towards the permits for all three years. There will not be any reimbursement for Wastewater and Streets in 2008, but there will be in 2009 and 2010. The Stormwater Capital Program will have $200,000 in 2008, $350,000 in 2009 and $600,000 in 2010 Additionally, a reserve fund of $322,000 will be built up over the three years that could be used for capital projects or emergencies. Option C — Graduated Rate Proposal Establish a stormwater rate of $22 for 2008 and $37 for 2009. This will have the following impacts The City will be able to meet minimum requirements towards the permits for the two years. There will not be any reimbursement for Wastewater and Streets in 2008, but there will be in 2009 The Stormwater Capital Program will include $200,000 in 2008 and $350,000 in 2009. There will be a reserve fund of $70,000 that could be used for capital projects or emergencies. We also wish to present for your consideration the enclosed Ordinance that: amends the annual rate to be assessed allows for stormwater fees of fifty dollars or greater to pay the first half by April thirtieth and the second half by November thirty- first: begins finance charges and late payment penalties for delinquent accounts on January 1 of the following year changes the title of the fee payer from "property owner" to "property tax payer" and deletes the twenty percent credits for low income seniors and low income disabled persons. Page 6of7 The City recently met with the County Treasurer and County Assessor to discuss the billing ILA. We were informed that the County is not planning on giving credits to low income seniors or low income disabled persons and that to do so would be extremely difficult and time consuming. When the City first proposed giving these credits, a cutoff date of October 15 was proposed If a low income senior or low income disabled person was registered with the County Assessor as of October 15 they would get the credit. What the County Assessor pointed out was that literally thousands of eligible people register between October and the end of the year and many more no longer qualify as disabled over this time period. The number is always changing and there will be a large amount of complaints no matter when the cutoff date is set to. Different scenarios were also made aware to us where if a qualifying person either bought or sold a home in this time period the qualifying person may end up not getting the credit and a non - qualifying person could receive the credit. In light of this new information and in order to be consistent with the County's Stormwater Program, the City is proposing to amend the ordinance and not allow twenty percent credits for low income seniors and low income disabled persons. It has been the intent of the City to utilize the County's Property tax statements as the vehicle to distribute the City's Stormwater user fee charges. The County Treasurer informed us that their system is set up with a break point at fifty dollars which would allow for bills greater than that to be split between the April and October statements. We continue working closely with the County Treasurer to produce the ILA for the City Manager's execution (see attachment 1 for draft ILA) for approval and action. To be included with the Tax statements, all pertinent information must be relayed to the County Treasurer by December The information herein details the considerable efforts of your RSPG Council representatives and City staff Each of the three alternatives, Options A, B and C have benefits and shortcomings. We look forward to the opportunity to discuss these options in greater detail with the full Council and public, and take public input. Page 7 of 7 OPTION A ORDINANCE NO. 2007- r AN ORDINANCE relating to the stormwater fees for the storm drainage and surface water management utility; amending the annual base rate of the stormwater fee, amending adjustments to stormwater fees and eliminating low- income senior and disabled citizen credits, amending the billing procedure for stormwater charges; amending specific textual references in the stormwater code to more accurately reflect the parties subject to fee payment; and amending Sections 7 80 110, 7 80 120, 7 80 130 and 7 80 140 of Chapter 7 80 of the City of Yakima Municipal Code to reflect said fee, billing and textual amendments WHEREAS, the City Council has previously established a storm drainage and surface water management utility through the enactment of Chapter 7 80 of the Yakima Municipal Code ( "YMC "), and WHEREAS, the City, the County of Yakima, the City of Union Gap, and the City of Sunnyside are pursuing a cooperative approach to regional stormwater drainage and surface water management policies in order to meet state and federal stormwater requirements, and WHEREAS, the City Council has determined that in order to preserve a compatible, consistent and functional fee billing system with and through Yakima County's tax collection system it is not possible to incorporate fee credits for the low- income senior and disabled citizens, and WHEREAS, the City Council finds and determines that minor amendments to the textual references within the stormwater ordinance are appropriate to more accurately identify those parties responsible for the payment of the stormwater fees, and WHEREAS, the City Council further finds and determines that it is necessary and advisable to amend the stormwater billing procedures to provide a two -part payment opportunity for ratepayers charged fifty dollars ($50 00) or more annually for stormwater management costs, and WHEREAS, the City Council finds and determines that adoption of this ordinance is in the public interest; 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 for 2008 as eighteen dollars ($18 00) In each year thereafter, the ongoing revenue requirements for the stormwater utility 1 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 Adjustments to stormwater user's fees as detailed in YMC 7 80 120 will automatically be applied to commercial, industrial and institutional parcel classes in 2008 These credits will sunset in one year unless proper documentation is received that verifies that the parcels meet the conditions of the discounts. For example, if a parcel contains its stormwater runoff in a drywell, the drywell must be registered with the Department of Ecology " Section 2. Section 7 80 120 of Chapter 7 80 of the City of Yakima Municipal Code is hereby amended to read as follows "7.80.120 Adjustments to stormwater user's fees. Credits allowed under this section shall not be cumulative. Except for the first -year credit that will be given to all commercial, industrial, and institutional parcels, credits or waivers must be granted by the engineer by October 15th of a given year in order for the credit or waiver to be in effect for the following billing year Credits or waivers are not retroactive to current or prior billings and are only in effect for the next billing year Credits or waivers may be in effect for multiple future billing years, provided, that ongoing qualifying criteria are met. The engineer will take such time as necessary to process requests for credits or waivers in an orderly fashion (A) Credits for Qualified Stormwater Facilities. The city council recognizes that some parcel owners have constructed or will construct private on -site stormwater quality and quantity mitigation facilities, which when properly operated and maintained will aid the city in controlling the overall effects of stormwater pollution Parcels or portions of parcels with facilities that meet one of the criteria listed below, to the engineer's satisfaction, shall receive a reduction of twenty percent from the annual fee charged for that portion of the site draining to such facilities. (1) Any commercial /industrial /institutional parcel with a properly constructed and maintained stormwater facility that meets or exceeds the design requirements of the 2004 Department of Ecology Stormwater Management Manual for Eastern Washington or an equivalent design manual adopted by the city Owners of subsurface stormwater infiltration systems shall provide evidence of compliance with the Washington State Underground Injection Control Program in order to receive the credit. (2) Any parcel that has an active and valid NPDES Industrial Stormwater Permit. A copy of the permit and the stormwater pollution prevention plan (SWPPP) shall be provided to the engineer The property owner is responsible for providing all documentation necessary to demonstrate compliance with the above requirements Documentation shall be by a licensed civil engineer with the state of Washington. In the event facilities or control measures address only a portion of the total parcel, the credit will be applied to only that affected portion. The customer must maintain any water quantity and /or quality control facility in accordance with Department of Ecology maintenance guidelines and 2 appropriate practice to ensure proper function and effectiveness of the facility Commercial /industrial /institutional parcel owners receiving credits shall agree to allow the city to periodically inspect the subject stormwater facilities. The city may request documentation from facility owners to verify that proper maintenance has been performed The city may notify owners in writing of maintenance needs or deficiencies Failure to maintain the facilities within thirty days after written notice may be cause for termination of the adjustment authorized by this section. (B) Credit for Rainwater Harvesting Systems. Upon review and approval by the engineer, owners of new or newly constructed commercial /industrial class buildings that utilize a properly constructed and maintained permissive rainwater harvesting system shall be eligible for a ten percent credit applied toward that portion of their stormwater charge arising from the building upon which the system is used Customers desiring this credit shall apply to the engineer and shall submit engineering design and operational information as deemed necessary by the engineer to make their evaluation and decision. Rainwater harvesting and beneficial reuse of the runoff is found by the city council to both reduce the burden imposed upon the system by the building by reducing runoff and to also have other beneficial water quality effects such as reduced consumption of potable water (B)(C) Waiver of Utility Fees for Certain Property The engineer shall waive stormwater and surface water utility fees for a parcel falling within the following special categories of property upon a showing that the parcel meets the following applicable criteria for so long as the criteria are met. (1) Fees shall be waived for city streets and street rights -of -way, since they act as stormwater conveyance facilities during large floods The city streets fund also contributes to the proper operation, maintenance, repair, improvement, and construction of the street drainage system. (2) Fees shall be waived for state of Washington highway rights -of -way, so long as the state of Washington cooperates with the utility in the provision of services and maintains, constructs and improves all drainage facilities contained within such rights -of- way as required by the utility in conformance with all utility standards for maintenance, construction and improvement hereafter established by the utility and so far as such maintenance, construction and improvements shall be achieved at no cost to the utility or to the city (3) Fees shall be waived for municipal, county, and state and federal parks, fishing areas, wildlife reserves, public trails and bike paths so long as their owners cooperate with the utility in the provision of educational services and water quality control efforts Fees shall be waived to the degree that such property owners offset the costs of the utility to manage the burdens imposed by such parcels. Parks, trails and bike paths have minimal intensity of impervious development and provide opportunities for natural resource education and development of an appreciation for water quality (4) Fees shall be waived for all vacant/undeveloped parcels The city council finds that such parcels generally have no improvements built on them, generate little to no traffic, utilize no chemicals, and generally are in a natural state, thereby imposing no burden upon the system and receiving no benefit from the utility's services and facilities. Information that a property categorized as vacant or undeveloped is being used otherwise may result in a loss of this waiver " 3 Section 3. Section 7 80 130 of Chapter 7 80 of the City of Yakima Municipal Code is hereby amended to read as follows. "7.80.130 Property ownerstax payers to pay fees. The ownerproperty tax payer of each nonexempt parcel shall pay the stormwater user's fee and charges as provided in this chapter Property ownerstax payers seeking adjustments or exemptions shall pay the full fee until such time that the adjustment or exemption is granted by the city " Section 4. Section 7 80 140 of Chapter 7 80 of the City of Yakima Municipal Code is hereby amended to read as follows. "7.80.140 Billing procedures and penalties for late payment. The charges as herein provided for shall be billed annually , Annual stormwater charges totaling Tess than fifty dollars ($50 00) shall be due and payable on or before the thirtieth day of April of the billing year , For annual stormwater charges totaling fifty dollars ($50 00) or greater, the first half of the total charge shall be due and payable on or before the thirtieth day of April of the billing year and the second half of the total charge shall be due and payable on the thirty -first day of October of the billing year Chargesand shall become delinquent thereafter if not paid. Finance charges and late payment penalties for delinquent accounts shall not begin to accrue until January first of the following year The owner of contiguous parcels having a single land use within the categories designated in YMC 7.80.100 may receive a single billing for such parcels. Collection of delinquencies, interest, penalty, and costs of collection for delinquent utility service charges provided for herein shall be charged interest on the delinquent balance at the rate of five percent per annum, computed on a monthly basis In addition to any other remedies permitted by law, the city shall have a lien pursuant to RCW Chapter 35 67, as currently enacted or hereinafter amended, for all delinquent service charges, including interest thereon, against the real property for which the service charges are calculated Said lien shall have the superiority, and may be foreclosed upon, as described in RCW Chapter 35 67, as currently enacted or hereinafter amended, or other applicable law The engineer may excuse delinquencies of Tess than thirty days The city treasurer may use the services of a collection agency to collect delinquent service charges in the manner and to the extent provided in RCW 19 16.500 as currently enacted or hereinafter amended The collection agency fee shall be added to the amount of the delinquent service charge Costs associated with the foreclosure of the lien, including but not limited to advertising, title report, and personnel costs, shall be added to the lien upon filing of the foreclosure action. In addition to the costs and disbursements provided by statute, the court may allow the city reasonable attorney's fees." Section 5. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance is declared invalid or unconstitutional for any reason, such decision shall not affect the validity of the remaining portions of this ordinance Section 6. 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 4 PASSED BY THE CITY COUNCIL at a regular meeting and signed and approved this 20 day of November, 2007 ATTEST David Edler, Mayor City Clerk Publication Date Effective Date 5 OPTION B ORDINANCE NO. 2007 - AN ORDINANCE relating to the stormwater fees for the storm drainage and surface water management utility; amending the annual base rate of the stormwater fee, amending adjustments to stormwater fees and eliminating low- income senior and disabled citizen credits, amending the billing procedure for stormwater charges, amending specific textual references in the stormwater code to more accurately reflect the parties subject to fee payment; and amending Sections 7 80 110, 7 80 120, 7 80 130 and 7 80 140 of Chapter 7 80 of the City of Yakima Municipal Code to reflect said fee, billing and textual amendments. WHEREAS, the City Council has previously established a storm drainage and surface water management utility through the enactment of Chapter 7 80 of the Yakima Municipal Code ( "YMC "), and WHEREAS, the City, the County of Yakima, the City of Union Gap, and the City of Sunnyside are pursuing a cooperative approach to regional stormwater drainage and surface water management policies in order to meet state and federal stormwater requirements, and WHEREAS, the City Council finds and determines that it is necessary and advisable to amend the annual base rate for stormwater charges for the first three fiscal years (2008 -2010) in order to provide adequate revenues to cover all costs allowable under applicable law that are incurred by the utility for stormwater management; and WHEREAS, the City Council has determined that in order to preserve a compatible, consistent and functional fee billing system with and through Yakima County's tax collection system it is not possible to incorporate fee credits for the low- income senior and disabled citizens, and WHEREAS, the City Council finds and determines that minor amendments to the textual references within the stormwater ordinance are appropriate to more accurately identify those parties responsible for the payment of the stormwater fees, and WHEREAS, the City Council further finds and determines that it is necessary and advisable to amend the stormwater billing procedures to provide a two -part payment opportunity for ratepayers charged fifty dollars ($50 00) or more annually for stormwater management costs; and WHEREAS, the City Council finds and determines that adoption of this ordinance is in the public interest; 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 for the first years 2008, 2009 and 2010 as eighteenthirty five dollars ($35 00) In each 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 Adjustments to stormwater user's fees as detailed in YMC 7 80 120 will automatically be applied to commercial, industrial and institutional parcel classes in 2008 These credits will sunset in one year unless proper documentation is received that verifies that the parcels meet the conditions of the discounts. For example, if a parcel contains its stormwater runoff in a drywell, the drywell must be registered with the Department of Ecology " Low - income senior and low- income disabled households contained in the 2007 tax records will receive a discount as detailed in YMC 7 80 120 Section 2. Section 7 80 120 of Chapter 7 80 of the City of Yakima Municipal Code is hereby amended to read as follows. "7.80.120 Adjustments to stormwater user's fees. Credits allowed under this section shall not be cumulative Except for the first -year credit that will be given to all commercial, industrial, and institutional parcels, credits or waivers must be granted by the engineer by October 15th of a given year in order for the credit or waiver to be in effect for the following billing year Credits or waivers are not retroactive to current or prior billings and are only in effect for the next billing year Credits or waivers may be in effect for multiple future billing years, provided, that ongoing qualifying criteria are met. The engineer will take such time as necessary to process requests for credits or waivers in an orderly fashion • _e••- - -- -- - -- T. - • - - - e giree- _ - _ -- _ - - - e . •e (A) Credits for Qualified Stormwater Facilities. The city council recognizes that some parcel owners have constructed or will construct private on -site stormwater quality and quantity mitigation facilities, which when properly operated and maintained will aid the city in controlling the overall effects of stormwater pollution Parcels or portions of parcels with facilities that meet one of the criteria listed below, to the engineer's satisfaction, shall receive a reduction of twenty percent from the annual fee charged for that portion of the site draining to such facilities. (1) Any commercial /industrial /institutional parcel with a properly constructed and maintained stormwater facility that meets or exceeds the design requirements of the 2004 Department of Ecology Stormwater Management Manual for Eastern Washington or an equivalent design manual adopted by the city Owners of subsurface stormwater infiltration systems shall provide evidence of compliance with the Washington State Underground Injection Control Program in order to receive the credit. (2) Any parcel that has an active and valid NPDES Industrial Stormwater Permit. A copy of the permit and the stormwater pollution prevention plan (SWPPP) shall be provided to the engineer 2 The property owner is responsible for providing all documentation necessary to demonstrate compliance with the above requirements. Documentation shall be by a licensed civil engineer with the state of Washington. In the event facilities or control measures address only a portion of the total parcel, the credit will be applied to only that affected portion. The customer must maintain any water quantity and /or quality control facility in accordance with Department of Ecology maintenance guidelines and appropriate practice to ensure proper function and effectiveness of the facility Commercial /industrial /institutional parcel owners receiving credits shall agree to allow the city to periodically inspect the subject stormwater facilities. The city may request documentation from facility owners to verify that proper maintenance has been performed The city may notify owners in writing of maintenance needs or deficiencies Failure to maintain the facilities within thirty days after written notice may be cause for termination of the adjustment authorized by this section. (B) Credit for Rainwater Harvesting Systems. Upon review and approval by the engineer, owners of new or newly constructed commercial /industrial class buildings that utilize a properly constructed and maintained permissive rainwater harvesting system shall be eligible for a ten percent credit applied toward that portion of their stormwater charge arising from the building upon which the system is used Customers desiring this credit shall apply to the engineer and shall submit engineering design and operational information as deemed necessary by the engineer to make their evaluation and decision. Rainwater harvesting and beneficial reuse of the runoff is found by the city council to both reduce the burden imposed upon the system by the building by reducing runoff and to also have other beneficial water quality effects such as reduced consumption of potable water (g)(C) Waiver of Utility Fees for Certain Property The engineer shall waive stormwater and surface water utility fees for a parcel falling within the following special categories of property upon a showing that the parcel meets the following applicable criteria for so long as the criteria are met. (1) Fees shall be waived for city streets and street rights -of -way, since they act as stormwater conveyance facilities during large floods The city streets fund also contributes to the proper operation, maintenance, repair, improvement, and construction of the street drainage system. (2) Fees shall be waived for state of Washington highway rights -of -way, so long as the state of Washington cooperates with the utility in the provision of services and maintains, constructs and improves all drainage facilities contained within such rights -of- way as required by the utility in conformance with all utility standards for maintenance, construction and improvement hereafter established by the utility and so far as such maintenance, construction and improvements shall be achieved at no cost to the utility or to the city (3) Fees shall be waived for municipal, county, and state and federal parks, fishing areas, wildlife reserves, public trails and bike paths so long as their owners cooperate with the utility in the provision of educational services and water quality control efforts Fees shall be waived to the degree that such property owners offset the costs of the utility to manage the burdens imposed by such parcels. Parks, trails and bike paths have minimal intensity of impervious development and provide opportunities for natural resource education and development of an appreciation for water quality 3 (4) Fees shall be waived for all vacant/undeveloped parcels The city council finds that such parcels generally have no improvements built on them, generate little to no traffic, utilize no chemicals, and generally are in a natural state, thereby imposing no burden upon the system and receiving no benefit from the utility's services and facilities Information that a property categorized as vacant or undeveloped is being used otherwise may result in a Toss of this waiver " Section 3. Section 7 80 130 of Chapter 7 80 of the City of Yakima Municipal Code is hereby amended to read as follows. "7.80.130 Property ownerstax payers to pay fees. The ownerproperty tax payer of each nonexempt parcel shall pay the stormwater user's fee and charges as provided in this chapter Property ownerstax payers seeking adjustments or exemptions shall pay the full fee until such time that the adjustment or exemption is granted by the city " Section 4 Section 7 80 140 of Chapter 7 80 of the City of Yakima Municipal Code is hereby amended to read as follows "7.80.140 Billing procedures and penalties for late payment. The charges as herein provided for shall be billed annually , Annual stormwater charges totaling less than fifty dollars ($50 00) shall be due and payable on or before the thirtieth day of April of the billing year , For annual stormwater charges totaling fifty dollars ($50 00) or greater, the first half of the total charge shall be due and payable on or before the thirtieth day of April of the billing year and the second half of the total charge shall be due and payable on the thirty -first day of October of the billing year Chargesand shall become delinquent thereafter if not paid Finance charges and late payment penalties for delinquent accounts shall not begin to accrue until January first of the following year The owner of contiguous parcels having a single land use within the categories designated in YMC 7.80.100 may receive a single billing for such parcels Collection of delinquencies, interest, penalty, and costs of collection for delinquent utility service charges provided for herein shall be charged interest on the delinquent balance at the rate of five percent per annum, computed on a monthly basis. In addition to any other remedies permitted by law, the city shall have a lien pursuant to RCW Chapter 35 67, as currently enacted or hereinafter amended, for all delinquent service charges, including interest thereon, against the real property for which the service charges are calculated. Said lien shall have the superiority, and may be foreclosed upon, as described in RCW Chapter 35 67, as currently enacted or hereinafter amended, or other applicable law The engineer may excuse delinquencies of less than thirty days. The city treasurer may use the services of a collection agency to collect delinquent service charges in the manner and to the extent provided in RCW 19 16 500 as currently enacted or hereinafter amended The collection agency fee shall be added to the amount of the delinquent service charge. Costs associated with the foreclosure of the lien, including but not limited to advertising, title report, and personnel costs, shall be added to the lien upon filing of the foreclosure action. In addition to the costs and disbursements provided by statute, the court may allow the city reasonable attorney's fees " Section 5. If any section, subsection, paragraph, sentence, clause or phrase of this 4 ordinance is declared invalid or unconstitutional for any reason, such decision shall not affect the validity of the remaining portions of this ordinance Section 6. 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 at a regular meeting and signed and approved this 20 day of November, 2007 ATTEST David Edler, Mayor City Clerk Publication Date Effective Date. 5 OPTION C ORDINANCE NO 2007 - AN ORDINANCE relating to the stormwater fees for the storm drainage and surface water management utility; amending the annual base rate of the stormwater fee, amending adjustments to stormwater fees and eliminating low- income senior and disabled citizen credits, amending the billing procedure for stormwater charges; amending specific textual references in the stormwater code to more accurately reflect the parties subject to fee payment; and amending Sections 7 80 110, 7 80 120, 7 80 130 and 7 80 140 of Chapter 7 80 of the City of Yakima Municipal Code to reflect said fee, billing and textual amendments. WHEREAS, the City Council has previously established a storm drainage and surface water management utility through the enactment of Chapter 7 80 of the Yakima Municipal Code ( "YMC "), and WHEREAS, the City, the County of Yakima, the City of Union Gap, and the City of Sunnyside are pursuing a cooperative approach to regional stormwater drainage and surface water management policies in order to meet state and federal stormwater requirements, and WHEREAS, the City Council finds and determines that it is necessary and advisable to amend the annual base rate for stormwater charges for the first two fiscal years (2008 -2009) in order to provide adequate revenues to cover all costs allowable under applicable law that are incurred by the utility for stormwater management; and WHEREAS, the City Council has determined that in order to preserve a compatible, consistent and functional fee billing system with and through Yakima County's tax collection system it is not possible to incorporate fee credits for the low- income senior and disabled citizens, and WHEREAS, the City Council finds and determines that minor amendments to the textual references within the stormwater ordinance are appropriate to more accurately identify those parties responsible for the payment of the stormwater fees, and WHEREAS, the City Council further finds and determines that it is necessary and advisable to amend the stormwater billing procedures to provide a two -part payment opportunity for ratepayers charged fifty dollars ($50 00) or more annually for stormwater management costs; and WHEREAS, the City Council finds and determines that adoption of this ordinance is in the public interest; 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 1 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 eighteen twenty two dollars ($22 00) for the -first yeaf 2008 and thirty seven dollars ($37 00) for 2009 In each 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. Adjustments to stormwater user's fees as detailed in YMC 7 80 120 will automatically be applied to commercial, industrial and institutional parcel classes in 2008 These credits will sunset in one year unless proper documentation is received that verifies that the parcels meet the conditions of the discounts. For example, if a parcel contains its stormwater runoff in a drywell, the drywell must be registered with the Department of Ecology " Low - income senior and low- income disabled households contained in the 2007 tax records will receive a discount as detailed in YMC 7 80 120 Section 2. Section 7 80 120 of Chapter 7 80 of the City of Yakima Municipal Code is hereby amended to read as follows. "7.80.120 Adjustments to stormwater user's fees. Credits allowed under this section shall not be cumulative. Except for the first -year credit that will be given to all commercial, industrial, and institutional parcels, credits or waivers must be granted by the engineer by October 15th of a given year in order for the credit or waiver to be in effect for the following billing year Credits or waivers are not retroactive to current or prior billings and are only in effect for the next billing year Credits or waivers may be in effect for multiple future billing years, provided, that ongoing qualifying criteria are met. The engineer will take such time as necessary to process requests for credits or waivers in an orderly fashion • - - -- - -- - - - - - - - - -' - - -- - • - •- - _ -_ - • (A) Credits for Qualified Stormwater Facilities. The city council recognizes that some parcel owners have constructed or will construct private on -site stormwater quality and quantity mitigation facilities, which when properly operated and maintained will aid the city in controlling the overall effects of stormwater pollution Parcels or portions of parcels with facilities that meet one of the criteria listed below, to the engineer's satisfaction, shall receive a reduction of twenty percent from the annual fee charged for that portion of the site draining to such facilities. (1) Any commercial /industrial /institutional parcel with a properly constructed and maintained stormwater facility that meets or exceeds the design requirements of the 2004 Department of Ecology Stormwater Management Manual for Eastern Washington or an equivalent design manual adopted by the city Owners of subsurface stormwater infiltration systems shall provide evidence of compliance with the Washington State Underground Injection Control Program in order to receive the credit. (2) Any parcel that has an active and valid NPDES Industrial Stormwater Permit. A copy of the permit and the stormwater pollution prevention plan (SWPPP) shall be provided to the engineer 2 The property owner is responsible for providing all documentation necessary to demonstrate compliance with the above requirements. Documentation shall be by a licensed civil engineer with the state of Washington In the event facilities or control measures address only a portion of the total parcel, the credit will be applied to only that affected portion. The customer must maintain any water quantity and /or quality control facility in accordance with Department of Ecology maintenance guidelines and appropriate practice to ensure proper function and effectiveness of the facility Commercial /industrial /institutional parcel owners receiving credits shall agree to allow the city to periodically inspect the subject stormwater facilities. The city may request documentation from facility owners to verify that proper maintenance has been performed. The city may notify owners in writing of maintenance needs or deficiencies Failure to maintain the facilities within thirty days after written notice may be cause for termination of the adjustment authorized by this section. (B) Credit for Rainwater Harvesting Systems. Upon review and approval by the engineer, owners of new or newly constructed commercial /industrial class buildings that utilize a properly constructed and maintained permissive rainwater harvesting system shall be eligible for a ten percent credit applied toward that portion of their stormwater charge arising from the building upon which the system is used Customers desiring this credit shall apply to the engineer and shall submit engineering design and operational information as deemed necessary by the engineer to make their evaluation and decision. Rainwater harvesting and beneficial reuse of the runoff is found by the city council to both reduce the burden imposed upon the system by the building by reducing runoff and to also have other beneficial water quality effects such as reduced consumption of potable water (13)(C) Waiver of Utility Fees for Certain Property The engineer shall waive stormwater and surface water utility fees for a parcel falling within the following special categories of property upon a showing that the parcel meets the following applicable criteria for so long as the criteria are met. (1) Fees shall be waived for city streets and street rights -of -way, since they act as stormwater conveyance facilities during large floods The city streets fund also contributes to the proper operation, maintenance, repair, improvement, and construction of the street drainage system (2) Fees shall be waived for state of Washington highway rights -of -way, so long as the state of Washington cooperates with the utility in the provision of services and maintains, constructs and improves all drainage facilities contained within such rights -of- way as required by the utility in conformance with all utility standards for maintenance, construction and improvement hereafter established by the utility and so far as such maintenance, construction and improvements shall be achieved at no cost to the utility or to the city (3) Fees shall be waived for municipal, county, and state and federal parks, fishing areas, wildlife reserves, public trails and bike paths so long as their owners cooperate with the utility in the provision of educational services and water quality control efforts Fees shall be waived to the degree that such property owners offset the costs of the utility to manage the burdens imposed by such parcels. Parks, trails and bike paths have minimal intensity of impervious development and provide opportunities for natural resource education and development of an appreciation for water quality 3 (4) Fees shall be waived for all vacant/undeveloped parcels The city council finds that such parcels generally have no improvements built on them, generate little to no traffic, utilize no chemicals, and generally are in a natural state, thereby imposing no burden upon the system and receiving no benefit from the utility's services and facilities Information that a property categorized as vacant or undeveloped is being used otherwise may result in a loss of this waiver " Section 3. Section 7 80 130 of Chapter 7 80 of the City of Yakima Municipal Code is hereby amended to read as follows. "7.80.130 Property ownerstax payers to pay fees. The ownerproperty tax payer of each nonexempt parcel shall pay the stormwater user's fee and charges as provided in this chapter Property ownerstax payers seeking adjustments or exemptions shall pay the full fee until such time that the adjustment or exemption is granted by the city " Section 4. Section 7 80 140 of Chapter 7 80 of the City of Yakima Municipal Code is hereby amended to read as follows "7.80.140 Billing procedures and penalties for late payment. The charges as herein provided for shall be billed annually , Annual stormwater charges totaling less than fifty dollars ($50 00) shall be due and payable on or before the thirtieth day of April of the billing year , For annual stormwater charges totaling fifty dollars ($50 00) or greater, the first half of the total charge shall be due and payable on or before the thirtieth day of April of the billing year and the second half of the total charge shall be due and payable on the thirty -first day of October of the billing year Chargesand shall become delinquent thereafter if not paid Finance charges and late payment penalties for delinquent accounts shall not begin to accrue until January first of the following year The owner of contiguous parcels having a single land use within the categories designated in YMC 7.80.100 may receive a single billing for such parcels Collection of delinquencies, interest, penalty, and costs of collection for delinquent utility service charges provided for herein shall be charged interest on the delinquent balance at the rate of five percent per annum, computed on a monthly basis. In addition to any other remedies permitted by law, the city shall have a Tien pursuant to RCW Chapter 35 67, as currently enacted or hereinafter amended, for all delinquent service charges, including interest thereon, against the real property for which the service charges are calculated. Said lien shall have the superiority, and may be foreclosed upon, as described in RCW Chapter 35 67, as currently enacted or hereinafter amended, or other applicable law The engineer may excuse delinquencies of less than thirty days. The city treasurer may use the services of a collection agency to collect delinquent service charges in the manner and to the extent provided in RCW 19 16 500 as currently enacted or hereinafter amended The collection agency fee shall be added to the amount of the delinquent service charge Costs associated with the foreclosure of the lien, including but not limited to advertising, title report, and personnel costs, shall be added to the lien upon filing of the foreclosure action In addition to the costs and disbursements provided by statute, the court may allow the city reasonable attorney's fees " 4 Section 5. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance is declared invalid or unconstitutional for any reason, such decision shall not affect the validity of the remaining portions of this ordinance Section 6. 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 at a regular meeting and signed and approved this 20 day of November, 2007 ATTEST David Edler, Mayor City Clerk Publication Date Effective Date 5 OPTION D ORDINANCE NO. 2007 - AN ORDINANCE relating to the stormwater fees for the storm drainage and surface water management utility; amending the annual base rate of the stormwater fee, amending adjustments to stormwater fees and eliminating low- income senior and disabled citizen credits, amending the billing procedure for stormwater charges, amending specific textual references in the stormwater code to more accurately reflect the parties subject to fee payment; and amending Sections 7 80 110, 7 80 120, 7 80 130 and 7 80 140 of Chapter 7 80 of the City of Yakima Municipal Code to reflect said fee, billing and textual amendments. WHEREAS, the City Council has previously established a storm drainage and surface water management utility through the enactment of Chapter 7 80 of the Yakima Municipal Code ( "YMC "), and WHEREAS, the City, the County of Yakima, the City of Union Gap, and the City of Sunnyside are pursuing a cooperative approach to regional stormwater drainage and surface water management policies in order to meet state and federal stormwater requirements, and WHEREAS, the City Council finds and determines that it is necessary and advisable to amend the annual base rate for stormwater charges for the first three fiscal years (2008 -2010) in order to provide adequate revenues to cover all costs allowable under applicable law that are incurred by the utility for stormwater management; and WHEREAS, the City Council has determined that in order to preserve a compatible, consistent and functional fee billing system with and through Yakima County's tax collection system it is not possible to incorporate fee credits for the low- income senior and disabled citizens, and WHEREAS, the City Council finds and determines that minor amendments to the textual references within the stormwater ordinance are appropriate to more accurately identify those parties responsible for the payment of the stormwater fees; and WHEREAS, the City Council further finds and determines that it is necessary and advisable to amend the stormwater billing procedures to provide a two -part payment opportunity for ratepayers charged fifty dollars ($50 00) or more annually for stormwater management costs, and WHEREAS, the City Council finds and determines that adoption of this ordinance is in the public interest; 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 1 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 eighteen dollars ($18 00) for the -first yeaF 2008, twenty seven dollars ($27 00) for 2009 and thirty seven dollars ($37 00) for 2010 In each 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. Adjustments to stormwater user's fees as detailed in YMC 7 80 120 will automatically be applied to commercial, industrial and institutional parcel classes in 2008 These credits will sunset in one year unless proper documentation is received that verifies that the parcels meet the conditions of the discounts. For example, if a parcel contains its stormwater runoff in a drywell, the drywell must be registered with the Department of Ecology " Low - income senior and low- income disabled households contained in the 2007 tax records will receive a discount as detailed in YMC 7 80 120 Section 2. Section 7 80 120 of Chapter 7 80 of the City of Yakima Municipal Code is hereby amended to read as follows `7.80.120 Adjustments to stormwater user's fees. Credits allowed under this section shall not be cumulative. Except for the first -year credit that will be given to all commercial, industrial, and institutional parcels, credits or waivers must be granted by the engineer by October 15th of a given year in order for the credit or waiver to be in effect for the following billing year Credits or waivers are not retroactive to current or prior billings and are only in effect for the next billing year Credits or waivers may be in effect for multiple future billing years, provided, that ongoing qualifying criteria are met. The engineer will take such time as necessary to process requests for credits or waivers in an orderly fashion - -- - - -- (A) Credits for Qualified Stormwater Facilities. The city council recognizes that some parcel owners have constructed or will construct private on -site stormwater quality and quantity mitigation facilities, which when properly operated and maintained will aid the city in controlling the overall effects of stormwater pollution Parcels or portions of parcels with facilities that meet one of the criteria listed below, to the engineer's satisfaction, shall receive a reduction of twenty percent from the annual fee charged for that portion of the site draining to such facilities. (1) Any commercial /industrial /institutional parcel with a properly constructed and maintained stormwater facility that meets or exceeds the design requirements of the 2004 Department of Ecology Stormwater Management Manual for Eastern Washington or an equivalent design manual adopted by the city Owners of subsurface stormwater infiltration systems shall provide evidence of compliance with the Washington State Underground Injection Control Program in order to receive the credit. (2) Any parcel that has an active and valid NPDES Industrial Stormwater Permit. A copy of the permit and the stormwater pollution prevention plan (SWPPP) shall be provided to the engineer 2 The property owner is responsible for providing all documentation necessary to demonstrate compliance with the above requirements. Documentation shall be by a licensed civil engineer with the state of Washington. In the event facilities or control measures address only a portion of the total parcel, the credit will be applied to only that affected portion. The customer must maintain any water quantity and /or quality control facility in accordance with Department of Ecology maintenance guidelines and appropriate practice to ensure proper function and effectiveness of the facility Commercial /industrial /institutional parcel owners receiving credits shall agree to allow the city to periodically inspect the subject stormwater facilities. The city may request documentation from facility owners to verify that proper maintenance has been performed. The city may notify owners in writing of maintenance needs or deficiencies Failure to maintain the facilities within thirty days after written notice may be cause for termination of the adjustment authorized by this section. (B) Credit for Rainwater Harvesting Systems. Upon review and approval by the engineer, owners of new or newly constructed commercial /industrial class buildings that utilize a properly constructed and maintained permissive rainwater harvesting system shall be eligible for a ten percent credit applied toward that portion of their stormwater charge arising from the building upon which the system is used Customers desiring this credit shall apply to the engineer and shall submit engineering design and operational information as deemed necessary by the engineer to make their evaluation and decision Rainwater harvesting and beneficial reuse of the runoff is found by the city council to both reduce the burden imposed upon the system by the building by reducing runoff and to also have other beneficial water quality effects such as reduced consumption of potable water (B)(C) Waiver of Utility Fees for Certain Property The engineer shall waive stormwater and surface water utility fees for a parcel falling within the following special categories of property upon a showing that the parcel meets the following applicable criteria for so long as the criteria are met. (1) Fees shall be waived for city streets and street rights -of -way, since they act as stormwater conveyance facilities during large floods The city streets fund also contributes to the proper operation, maintenance, repair, improvement, and construction of the street drainage system. (2) Fees shall be waived for state of Washington highway rights -of -way, so long as the state of Washington cooperates with the utility in the provision of services and maintains, constructs and improves all drainage facilities contained within such rights -of- way as required by the utility in conformance with all utility standards for maintenance, construction and improvement hereafter established by the utility and so far as such maintenance, construction and improvements shall be achieved at no cost to the utility or to the city (3) Fees shall be waived for municipal, county, and state and federal parks, fishing areas, wildlife reserves, public trails and bike paths so long as their owners cooperate with the utility in the provision of educational services and water quality control efforts Fees shall be waived to the degree that such property owners offset the costs of the utility to manage the burdens imposed by such parcels. Parks, trails and bike paths have minimal intensity of impervious development and provide opportunities for natural resource education and development of an appreciation for water quality 3 (4) Fees shall be waived for all vacant/undeveloped parcels The city council finds that such parcels generally have no improvements built on them, generate little to no traffic, utilize no chemicals, and generally are in a natural state, thereby imposing no burden upon the system and receiving no benefit from the utility's services and facilities Information that a property categorized as vacant or undeveloped is being used otherwise may result in a Toss of this waiver " Section 3. Section 7 80 130 of Chapter 7 80 of the City of Yakima Municipal Code is hereby amended to read as follows. "7 80.130 Property ownerstax payers to pay fees. The ownerproperty tax payer of each nonexempt parcel shall pay the stormwater user's fee and charges as provided in this chapter Property ownerstax payers seeking adjustments or exemptions shall pay the full fee until such time that the adjustment or exemption is granted by the city " Section 4. Section 7 80 140 of Chapter 7 80 of the City of Yakima Municipal Code is hereby amended to read as follows "7.80.140 Billing procedures and penalties for late payment. The charges as herein provided for shall be billed annually , Annual stormwater charges totaling Tess than fifty dollars ($50 00) shall be due and payable on or before the thirtieth day of April of the billing year , For annual stormwater charges totaling fifty dollars ($50 00) or greater, the first half of the total charge shall be due and payable on or before the thirtieth day of April of the billing year and the second half of the total charge shall be due and payable on the thirty -first day of October of the billing year Chargesand shall become delinquent thereafter if not paid Finance charges and late payment penalties for delinquent accounts shall not begin to accrue until January first of the following year The owner of contiguous parcels having a single land use within the categories designated in YMC 7.80.100 may receive a single billing for such parcels. Collection of delinquencies, interest, penalty, and costs of collection for delinquent utility service charges provided for herein shall be charged interest on the delinquent balance at the rate of five percent per annum, computed on a monthly basis. In addition to any other remedies permitted by law, the city shall have a lien pursuant to RCW Chapter 35 67, as currently enacted or hereinafter amended, for all delinquent service charges, including interest thereon, against the real property for which the service charges are calculated. Said lien shall have the superiority, and may be foreclosed upon, as described in RCW Chapter 35 67, as currently enacted or hereinafter amended, or other applicable law The engineer may excuse delinquencies of less than thirty days. The city treasurer may use the services of a collection agency to collect delinquent service charges in the manner and to the extent provided in RCW 19 16 500 as currently enacted or hereinafter amended The collection agency fee shall be added to the amount of the delinquent service charge. Costs associated with the foreclosure of the lien, including but not limited to advertising, title report, and personnel costs, shall be added to the lien upon filing of the foreclosure action In addition to the costs and disbursements provided by statute, the court may allow the city reasonable attorney's fees." Section 5. If any section, subsection, paragraph, sentence, clause or phrase of this 4 Y. ordinance is declared invalid or unconstitutional for any reason, such decision shall not affect the validity of the remaining portions of this ordinance Section 6. 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 at a regular meeting and signed and approved this 20 day of November, 2007 ATTEST David Edler, Mayor City Clerk Publication Date Effective Date 5 r� BUSINESS OF THE CITY COUNCIL o YAKIMA, WASHINGTON AGENDA STATEMENT �� S/ Item No. 4 For Meeting of November 20, 2007 ITEM TITLE A) Public hearing to consider proposed legislation amending the storm drainage and surface water management utility ordinance, B) Council action on ordinance amending the Stormwater fees SUBMITTED BY Councilmembers McClure and Lover, Dick Zais, Dave Zabell, Randy Meloy, Chris Waarvick, and Doug Mayo CONTACT PERSON/TELEPHONE Dave Zabell, Assistant City Manager Randy Meloy, Surface Water Engineer SUMMARY EXPLANATION This is a continuation of a Public Hearing from November 6, 2007 considering proposed legislation amending the storm drainage and surface water management utility ordinance This amended ordinance is the legislative vehicle necessary to implement the federal and state mandated storm water program to comply with NPDES permit and UIC regulations (NPDES — National Pollutant Discharge Elimination System and UIC — Underground Injection Controls) - (continued) - Resolution Ordinances X Other (Specify) Background information and attachments Contract Mail to (name and address) Phone Funding Source Revenue from St water Fees APPROVED FOR SUBMITTAL. �•� i City Manager STAFF RECOMMENDATION The ultimate decision regarding implementation of this program and the accompanying rates is a Council policy issue The Stormwater information packets describe different funding options in much greater detail, as well as other information about the Stormwater program in general and form the basis of the proposed recommendations Councilmember Whitman has proposed a rate option for your consideration (Option D) Information regarding this proposal is attached Staff recommends holding the "continued" Public Hearing, deliberating the options presented and finally deciding on an option to fund the stormwater program BOARD /COMMISSION RECOMMENDATION COUNCIL ACTION Pass Ordinance (Continued from front page) Under the Regional Stormwater Planning Group (RSPG) umbrella group, a value engineering study was completed analyzing the Stormwater Utility Financial Planning Analysis done by OTAK spelling out what steps should be taken to minimally, yet adequately, comply with the NPDES Phase 2 Municipal Stormwater Permit and the Underground Injection Control (UIC) Program In July 2007, a regional stormwater entity was formalized through an Interlocal Agreement (ILA) between Yakima County and the Cities of Yakima, Union Gap and Sunnyside Based on this ILA, "regional" tasks and costs were assigned, and the county assumed lead "regional" status This is consistent with the City Council priority to regionalize government efforts where feasible to avoid duplication and contain costs At the Public Hearing on November 6, 2007 a number of inquiries and questions were presented from the public Staff has attempted to provide answers and these are attached We are now approaching the second year of the NPDES Permit cycle and the third year of the Mandated UIC program The Stormwater program has been subsidized for three years by Wastewater and Streets implementing some of the required permit items Staff recently completed a report outlining funding needs for the Stormwater program to meet the minimum requirements of the NPDES and UIC permits for the City of Yakima. We have concluded, after the RSPG effort, that the rate proposed in 2004 and currently in the 2006 Ordinance does not provide adequate revenue to fund a "minimal" program, support the Regional effort, provide for reimbursement, and support a modest Capital program (flood control) Staff recommends that City Council hold the Public Hearing, deliberate the alternatives and decide on an option to fund the program This is a critical step to ensure that the County can incorporate into their assessment process the city's fee structure so revenues may be collected for the 2008 budget year