Fort Walton Beach Council agenda — 02-23-2010 Regular — reading text

6. 1  CITY OF FORT WALTON BEACH MEMORANDUM To: Robert T. Mearns, City Manager From: Michael D. Beedie, P. E., City Engineer Date: February 11, 2010 Subject: Ordinance No. 1821 to Amend Chapter 10. 521 Stormwater Management Utility of the Code of Ordinances ( First Reading) 1. BACKGROUND: 1. 1 In August 2008, City Council adopted Ordinance No. 1768 to establish a Stormwater Management Utility. Resolution 2008 -34 established the user fee of 3. 00 per Equivalent Residential Unit ( ERU). The Stormwater Management Utility began operating on October 1, 2008. 1. 1. 1 The Stormwater Management Utility was established as a City utility fund to allow for the " maintenance, planning, design, enterprise construction, regulation, surveying, and inspection related to stormwater management facilities of the City ". 1. 1. 2 The Stormwater Utility fee would be " charged to all developed property within the City that contributes stormwater runoff to the City' s stormwater management systems to accomplish the functions of such utility ". 1. 1. 3 The Equivalent Residential Unit (ERU) is used as the basis of calculating the user fee for each property in the City that has an active water meter account. 1. 1. 3. 1 Tetra Tech, Inc., the City' s Stormwater Utility consultant, performed an engineering analysis of a statistical sampling of the residential properties within the City in order to determine a gross area of effective impervious area to be used as the basis of the ERU. 1. 1. 3. 2 The original gross impervious area for one ( 1) ERU was set at 2,700 square feet in Ordinance No. 1768. 1. 2 Based on the 2,700 square foot per ERU, a user fee was established for both In Ordinance No. Single- family residential property" and " Other properties ". 1768, the user fees were as follows: 101-  1. 2. 1 " Single- family residential property. Each single -family property, including those properties with up to four residential units, shall be considered one ERU for billing purposes. Monthly service charges for each single- family dwelling unit shall be identical ". 1. 2. 2 " Other properties. All other properties shall be charged a user fee equivalent to following formula: Base ERU = Total impervious the surface on property divided by the residential ERU of 2, 700 ". 1. 3 Using these; user fee criteria, Tetra Tech estimated the FY 2008 -09 Stormwater Management Utility revenue as $ 594, 000: 1. 3. 1 Residential Property - $ 279, 180 1. 3. 2 Commercial / Other Properties - $ 314, 820 4 The actual Stormwater Management Utility fees collected in FY 2008 -09 were 652, 663. 73, or $ 58, 663. 73 higher than Tetra Tech' s projections: 1. 4. 1 Residential Property - $ 316, 675. 78, or $37,495. 78 higher 1. 4. 2 Commercial / Other Properties - $ 335, 987. 95, or $21, 167. 95 higher 1. 5 Any overages charged to customers from October 1, 2008, through the adoption of a revised Stormwater Utility ordinance will be credited back to existing customers, and those properties who have discontinued service or changed account holders will be handled on a case -by -case basis. 2. DISCUSSION: 2. 1 During an :internal QA/QC of the Tetra Tech database by Engineering Services Department: staff, it was determined that the properties used in the original engineering; analysis for the ERU calculation was incorrect. Tetra Tech was contacted and verified that the ERU basis should have been 3, 200 square feet and not 2, 700 square feet, an increase of 18. 5 %. 2. 2 Ordinance ' No. 1821 revises the Stormwater Management Utility to account for the error in the original ERU calculation and also clarifies the calculation of the user fete for residential and commercial properties. 3. FINANCIAL )INFORMATION: 3. 1 The net annual financial impact of the corrections required for the calculation of the Stormwater Utility ERU is a decrease of $56, 172 per year ( 8. 4% decrease). This decrease accounts for the change in ERU basis from 2, 700 S. F. to 3, 200 S. F. and for corrections in the digitization of impervious surfaces for commercial properties. 102-  3. 2 Please note that the actual revenue collected is based on the number of active water meters in the City' s billing system. 3. 3 Any over collection of Stormwater Utility user fees shall be credited to the affected accounts after the adoption of Ordinance No. 1821. Those accounts affected by the errors will be notified in writing of the error and the appropriate credit. 4. RECOMMENDATION: 4. 1 Staff requests City Council adoption of Ordinance No. 1821 to amend Chapter 10. 521, Stormwater Management Utility, of the Code of Ordinances to account for a revision in the calculation of the Equivalent Residential Unit ( ERU) from 21700 S. F. to 3, 200 S. F. and to clarify the calculation of the Stormwater Utility user fees for residential and commercial properties. 4.2 Staff also requests City Council authorization for the City Manager to proceed with the determination of the user fee overage for individual properties and to begin to process credits to the utility accounts for the overages. 5. ATTACHMENTS: 5. 1 Ordinance No. 1821 5. SIGNATURE BLOCK: 5. 1 Submitted .By Michael D. Beedie, P. E., City Engineer 5. 2 Reviewed and Concur: --• Brandy Wunker, Finance Director 5. 3 Reviewed for Agenda: zwlzo Rhbert T. Mearns ity Manager 103-  I ORDINANCE 1821 2 3 AN ORDINANCE OF THE CITY OF FORT WALTON BEACH, 4 FLORIDA.; PROVIDING AUTHORITY; AMENDING CHAPTER 5 10. 521, STORMWATER MANAGEMENT UTILITY, OF THE 6 CODE OF ORDINANCES; PROVIDING FOR REPEAL OF 7 CONFLICTING PROVISIONS AND AN EFFECTIVE DATE. 8 9 BE IT ORDAINED BY THE CITY OF FORT WALTON BEACH, 10 FLORIDA: 11 12 Section 1. Authority 13 The authority for enactment of this ordinance is pursuant to section 2 of the City 14 Charter, and sections 166. 021( 1) and 403. 0893 of the Florida Statutes ( 2009). 15 16 Section 2. Intent 17 Chapter 10. 521 of the Code of Ordinances is being amended to incorporate 18 changes for the City' s Stormwater Utility operations, charges, and to correct terminology. 19 20 Section 3. Amendment of Chapter 10. 521, Stormwater Management Utility 21 Chapter 10. 521, Stormwater Management Utility, of the Code of Ordinances is 22 amended as follows: 23 24 a. Section 10. 521. 01, Definitions, of the Code of Ordinances is amended to add 25 the following definitions: 26 27 Commercial property. Any property designated as a commercial or multi - 28 commercial[ property in the city' s utility billing_system. This includes any 29 other property not designated as residential property. 30 31 Equivalent residential unit ( ER U). A reference from which an equitable 32 distribution of the cost of services and facilities can be made among all 33 properties iin the city through a stormwater management service charge 34 rate methodology. The equivalent residential unit in the city for the 35 purpose of service charge ratemaking has been determined through 36 engineering analysis to be a gross area of 3, 200 2, 709 square feet of 37 effective impervious area. 38 39 Impervious areas. Surfaces which have been compacted or covered with a 40 layer of material which is highly resistant to infiltration by water, such as 41 roofed and paved areas, including, but not limited to, areas covered by 42 roofs, roof extensions, slabs, patios, porches, driveways, sidewalks, 43 parking areas and athletic areas. it shall alse ;,, elude nom; ; fY„ 1pYf Otis 45 104- 46 Residential property. Any property designated or currently used as a 47 residential or multi -residential property in the city' s utility billing system 48 and having a water meter. This includes single- family dwellings, 49 apartments, town homes, and condominiums. 50 51 b. Section 10. 521. 03, Stormwater Management Utility User Fee, of the Code of 52 Ordinances is amended as follows: 53 54 Sec. 10. 521. 03. Stormwater Management Utility User Fee. 55 There is hereby created a stormwater management utility 56 user fee to be charged for the provision of stormwater management 57 services to properties with impervious surfaces and developed properties 58 with improvements or uses that contribute stormwater runoff to the city's 59 stormwater management systems. Such user fees shall be used only to 60 accomplish the functions of the stormwater management program and 61 utility. Such user fees shall be a monthly fee as established by a separate 62 resolution and set forth in the comprehensive fee schedule, in accordance 63 with the following methodology. 64 si; „^ l'° n 65 ( a) sin. amlh, Rresidential property. Each residential 66 property or unit, including any single- family dwelling or unit, of any kind, 67 within a multi -family development, then with up to 1 V l.11 7 68 r-esidei# ial • nits, shall be considered one LERU for billing purposes. 4nm, 69 Monthly service charges for each residential property_ 4ng ° iY 70 dwelling unit. shall be identical and billed according to the water meter 71 assigned to the unit. 72 73 (