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HomeMy WebLinkAbout2708A Repealing Stormwater Reserve Capacity Charges, pending adoption of the Stormwater Management Plan and Implementing RegulationsOrdinance No. ~ '7 ~ ~ ]~r AN ORDINANCE OF THE CITY OF PORT TOWNSEND, REPEALING SECTION 13.05.060, "STORMWATER RESERVE CAPACITY CHARGES," CHAPTER 13.05, UTILITY RATES AND CHARGES, OF THE PORT TOWNSEND MUNICIPAL CODE, ON AN INTERIM BASIS, PENDING ADOPTION OF THE CITY'S STORMWATER MANAGEMENT PLAN AND IMPLEMENTING REGULATIONS SECTION 1. FINDINGS AND RECITALS 1. On December 2, 1986, the Port Townsend City Council passed Ordinance No. 2053, which Ordinance established a city stormwater utility. The stormwater utility was established upon the recommendation of engineering consultants, to address stormwater management problems. The City's stormwater concerns, and recommended mitigation measures, were analyzed in the "Comprehensive Stormwater Drainage Plan for Port Townsend, Washington," finalized in January 1987 (hereafter "the 1987 Stormwater Plan"). The 1987 Stormwater Plan, as adopted in 1987 and as amended at any time, is incorporated within this Ordinance in its entirety. 2. The 1987 Stormwater Plan studied and documented Port Townsend's somewhat unique physical setting, which imposes many limitations upon the City's ability to comprehensively manage stormwater impacts. The City is composed of 16 separate drainage basins, based upon concentration points and discharge points. Several "external basins" discharge stormwater into the Puget Sound, while the "internal basins" generally have internal discharge points and no outlet, presenting substantial concerns for adequate available storage and limited percolation. (1987 Stormwater Plan, Chapter 2). (See also, 1996 Draft City of Port Townsend Comprehensive Plan, Chapter IV). 3. The 1987 Stormwater Plan contains an analysis of each basin, including the stormwater management concerns within each drainage basin. The stormwater problems posed by Port Townsend's physical setting have recently been confirmed by a series of Flood Control Assistance Account Program "FCAAP" studies, prepared to assist the City with stormwater management planning. 4. The 1987 Stormwater Plan analyzed various measures needed to better manage and control stormwater within the City's 16 stormwater drainage basins. The Plan includes an analysis of needed public improvements and additional planning and management needs. The Plan demonstrates the need to establish a variety of funding mechanisms to pay for stormwater management. 5. The 1987 Stormwater Plan was undertaken and adopted to protect the public health and safety from the risk of flooding, water pollution, and health concerns associated with surface and ground water contamination. The Plan was adopted in accordance with the City's general municipal authority, including the authority granted by Chapter 35.67 RCW, enabling cities to construct, maintain and regulate storm and surface water sewer systems. In accordance with RCW 35.67.020, the Plan recommends measures to operate a comprehensive stormwater system, including measures to "manage, regulate, and control [the system] and to fix, alter, regulate, and control the rates and charges" for the use of, and impacts upon, the stormwater system. 6. The City's Stormwater Utility has pursued a program of natural drainage basin stormwater management, preferring the acquisition and development of natural stormwater detention and retention facilities, and the channeling and collection of stormwater through natural drainage corridors rather than through exclusively mechanical infrastructure. Port Townsend's stormwater management system has focused upon downstream impacts, through the comprehensive acquisition and development of natural receiving areas where natural stormwater detention and treatment can occur. 7. In two recent decisions, the Washington Supreme Court has strongly encouraged the management and control of stormwater through natural systems, within existing drainage basins, and has held municipalities liable for disrupting natural stormwater flows and damaging private properties. In these cases, the Supreme Court rejected the applicability of the "common enemy doctrine," which has traditionally shielded municipalities from liability exposure. See, DiBlasi v. seattle, 136 Wn.2d 865 (1998) and Phillips v. King County, 136 Wn.2d 946 (1998). In adopting its stormwater management system, Port Townsend is well ahead of other municipalities, and has made great strides to resolve long-term stormwater problems, thereby protecting public health and safety, and significantly limiting long-term liability exposure for Port Townsend's taxpayers for private property damage resulting from stormwater inundation. 8. The 1987 Stormwater Plan recommended various measures to fund the stormwater utility in order to mitigate the deleterious impacts of stormwater inundation. The funding mechanisms ultimately adopted, effective March 1, 1987, included a flat monthly service fee, used for operation and maintenance of the stormwater utility system, and "reserve capacity charges," imposed upon new development applications, used predominantly for capital facilities projects and property acquisition purposes. The "reserve capacity charges" are codified in the Port Townsend Municipal Code as follows: 13.05.060 Stormwater reserve capacity charges. For the properties developed after the effective billing date of the fees imposed by this chapter, the city shall levy a charge for connection to the city's stormwater drainage system. This charge reflects the city's investment in stormwater drainage facilities either through prior investment or bonding. The charge, to be known as the "reserve capacity charge," shall be computed as follows: Reserve Capacity Charge = $3.00 x Number of months since March 1, 1987. (Ord. 2579 § 1, 1997; Ord. 2054 § 8, 1986). -2- Ord. No. 9. In 1996, the City adopted its Comprehensive Plan, in accordance with the Growth Management Act. The Capital Facilities & Utilities Element, Chapter VII, adopts strategies and makes recommendations for stormwater management and control, including stormwater system financing. The goals and policies of the Comprehensive Plan are incorporated herein by this reference. 10. In accordance with policy direction from the Comprehensive Plan, the City of Port Townsend is currently working on a new Draft Stormwater Management Plan, which will comprehensively reassess stormwater impacts and management needs, and will make recommendations to the City Council regarding strategies to manage and fund the stormwater utility. The draft Stormwater Management Plan is scheduled to begin a public review and heatings process in the near future. The Plan will reconsider all current funding mechanisms, including the reserve capacity charge method of funding, with the goal of basing the revenue generation system upon recently formulated sound financial accounting, management and engineering analyses. 11. Property owners who have installed substantial, engineered onsite stormwater management systems in compliance with City regulations, including the Department of Ecology's Stormwater Management Manual, have objected to the reserve capacity charge method of generating stormwater utility revenues. 12. The City Council has determined that it is in the City's best interests to reconsider the reserve capacity charge system during review of the draft Stormwater Management Plan, and to consider an alternative system of development fees which better account for engineered onsite stormwater management systems, account for on-site versus neighborhood and regional stormwater management needs, account for the obligation of new development to pay their fair share of system development costs, and better advance policy direction from the City's 1996 Comprehensive Plan, Policy 25.2, which provides: "Establish fees and charges to recover utility costs related to development. Allocate costs to reflect the true cost to the utility.' 13. Prior to approving the ongoing use of the reserve capacity charge system, the City Council intends to review financial accounting and reconciliation information regarding the stormwater utility fund(s) and accounts, to assure the public that the revenues are being used for appropriate stormwater-related purposes. The City Council finds that pending adoption of the Draft Stormwater Management Plan, further collection of reserve capacity charges should be suspended, and that new capital and property acquisition programs relying upon these fees should also be suspended, NOW, TI-IEREFORE, BASED UPON the Findings set forth in SECTION 1, the City Council of the City of Port Townsend does ordain as follows: -3- Ord. No. SECTION 2. Repeal of Section 13.05.060 PTMC. Based upon the Findings set forth in Section 1 herein, Chapter 13.05, "Utility Rates and Charges," Section .060, Stormwater Reserve Capacity Charges," of the Port Townsend Municipal Code is hereby REPEALED. SECTION 3. Future Consideration of Funding Measures for Stormwater Utility. In consideration of the draft Stormwater Management Plan, the City Council shall comprehensively consider all utility needs, including all capital facilities and maintenance requirements to address local land use needs, and to meet statewide and federal stormwater control and water quality requirements. Upon the adoption of the Plan, and based upon the engineering and financial information provided through the Plan, the City Council will consider all appropriate funding needs and strategies. In order to assist the City Council in considering future funding options, the City Council directs the City Manager to review all stormwater funds and accounts, and to conduct a financial reconciliation and accounting of such funds and accounts. SECTION 4. Severability. If any clause, sentence, paragraph, section or part of this Ordinance or its application to any person or circumstance is held to be invalid or unconstitutional by a court of competent jurisdiction, such order or judgment shall not affect the validity or constitutionality of the remainder of any part of this Ordinance. To this end, the provisions of each clause, sentence, paragraph, section or part of this law are declared severable. This ordinance shall take effect and be in force five days after the date of its publication in the manner provided by law. ADOPTED by the City Council of the City of Port Townsend, Washington, at a regular meeting thereof, held this..~ day of/0r~¢~-q'-- , 1999. Forrest Rambo; Mayor Attest: Pam Kolacy, Cit~ Clerk 9/01/99 [98-31] tlm\Ord\{1305-O60.doc} han, City Attorney Ord. No. ~ Q D~ -fl