Title
AN ORDINANCE AMENDING CHAPTER 10 OF THE COMMERCE CITY REVISED MUNICIPAL CODE TO ADD ARTICLE IV ESTABLISHING A STORMWATER MANAGEMENT UTILITY AND AUTHORIZING THE COLLECTION OF A FEE THEREFOR
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Summary and Background Information:
The purpose of this ordinance is to create the storm water utility. The ordinance does not include setting a fee and does not, by itself, have any financial impact. It requires two readings by the City Council. This proposed ordinance is only to create a storm water utility and lay the legal groundwork for how the utility will operate. It includes definitions of activities that can be funded with the fee, including storm water management capital projects, NPDES Permit compliance, and the operation, maintenance, and the administrative activities related to storm water management. The ordinance also defines a standard single-family detached residential (SFDR) parcel as a quarter acre in size or less and that they will be assessed a flat fee. All other non-SFDR parcels will be assessed based on per square foot of impervious surface. Finally, the ordinance creates a fee appeal process and sets most billing of parcels to be done through Adams County property owners' tax bill, while also allowing the city's finance department to arrange special invoice/payment terms for parcels/owners with special circumstances. At the direction of City Council, staff will continue to provide information on options for the amount of the fee for consideration.
A fee resolution will be presented to Council in late August, with fee options presented to Council in a study session prior to the resolution. While options are still being studied, they will include options with initial fees lower than $6/month for SFDR, and possible phasing options. In order to implement a fee by January 1st, 2013, a fee resolution must be passed no later than August 20th, 2012.
The storm water utility fee being proposed would fund various storm water and water quality related maintenance activities and capital projects. Many of these activities are un-funded mandates by the state and federal governments that the city does not have dedicated funding sources for and must fund through the general fund. Currently, the city's storm water program, which currently only includes permit compliance and drainage maintenance activities, costs about $875,000 from the general fund. Implementing a fee will open those funds to be used for other purposes, while also providing funding for the city's $86 million worth of needed drainage improvements that currently must compete with all other capital improvement projects for funding. The fee would also make sure the city stays in compliance with state and federal storm water requirements. To date, over 15 local communities in the Denver-metro area have similar utility fees to fund these mandates, maintenance activities, and projects.
A storm water utility fee has been discussed and studied since 2007. In 2011, a feasibility study was finished that determined that a storm water utility fee would be a viable option for the city to fund various storm water related activities and projects. Late in 2011, City Council budgeted $200,000 in 2012 for implementation of a storm water utility fee. Several previous presentations have been given to City Council on these dates:
September 8, 2008
September 14, 2009
April 14, 2011
August 22, 2011
February 13, 2012
April 23, 2012
June 11, 2012
These presentations have included information on the Feasibility Study, education on the city's storm water program, what storm water utility would look like, potential fee rates and how they would compare to neighboring utility fees, and recommendations on how a fee could be billed.
Staff Responsible (Department Head): Gregg Clements, Director of Public Works
Staff Member Presenting: Matt Wiederspahn
Financial Impact: $ None
Funding Source: N/A
Staff Recommendation: Adopt the ordinance to create the storm water utility
Suggested Motion:
I move to introduce ordinance # 1896 by Council as seated and approve the ordinance on 1st reading.