ORDINANCE NUMBER 2014-03-01 AN ORDINANCE ESTABLISHING STORMWATER UTILITY RATES AND CHARGES Whereas, The City of Warsaw ("City") has been identified as a Municipal Separate Storm Sewer System (MS4) under the Clean Water Act of 1972 and 15 required to comply with the Phase II Stormwater Regulation as implemented by the Indiana Department of Environmental Management Rule 13 and comply with the requirements of lAC 327- 15-13 or Rule 13; AND Whereas, the City of Warsaw requires funding for the Stormwater Utility established through Indiana Code 36-9-23.2 as a means to comply with the regulatory requirements; AND Whereas, the City of Warsaw requires funding for needed capital improvement projects to reduce flooding and improve drainage for citizens and businesses within the city; AND Whereas, the City of Warsaw has consulted with qualified professional engineers to determine the city's funding needs, develop a fair and equitable funding solution specific to Its population to meet the needs of its community; AND Whereas, all the territory In the city is considered to have received a special benefit from the collection and disposal facilities of the city equal to or greater than the fees imposed on the territory under Indiana Code 36-9-23-25 in order to pay all or part of the costs of such facilities; AND Whereas, the City has determined a fair and equitable means to equally distribute the cost of funding water quality initiatives with all users in the city AND Whereas, the city has determined a fair and equitable way to distribute infrastructure and capital improvement costs fairly among residential and non-residential properties while taking into account runoff from impervious surfaces; NOW THEREFORE, the following is adopted: Chapter 78, Article VI. is now added to the City Code of Warsaw, Indiana Section 78-600 Definitions. Unless the content specifically indicates otherwise, the meaning of the terms in this Article shall be as follows: A. Equivalent Residential Unit (ERU) shall mean a unit value which is equal to the average amount of impervious surface area for a single family home within the MS4 jurisdiction of the City of Warsaw which Is established at three thousand five hundred fifty (3,550) square feet of impervious area. The unit value which will be rounded to the nearest whole number will be the basis for calculating the variable portion of the non-residential fee. B. Impervious Surface Area shall mean the amount, measured in square footage, of the surfaces on a parcel of land that prevent or impede infiltration of Stormwater into the soil as It enters under natural conditions prior to development. Common impervious areas include, but are not limited to, rooftops, sidewalks, walkways, patio areas, driveways, parking lots, storage areas, gravel surfaces, awnings and other fabric or plastic coverings, and other surfaces that impede the natural infiltration of Stormwater. . C. Non-residential Real Estate shall mean any parcel of land or building located within the MS4 jurisdiction of the city, which Is not used for residential purposes or defined under the definition of residential unit. Non-residential real estate will include: I. Agricultural real estate; II. Commercial real estate; III. Industrial real estate; iv. Institutional real estate; v. Church real estate; vi. School real estate; vii. Utility real estate viii. Government real estate; ix. Any other real estate not mentioned in this list and which is not described by the definition of residential real estate or government real estate. D. Government Real Estate shall mean any parcel of land or building located within the MS4 jurisdiction of the city which is owned by a federal, state, or local government agency and not used for residential purposes. E. Residential Unit shall mean any parcel of land, building, or any and all dwelling units, including single-family, duplexes, apartments, condominiums, and mobile home courts (by way of example and not limitation) located within the MS4 Jurisdiction of the city, which Is used primarily as a residence. F. Roads shall mean any designated public thoroughfare used for transit on government owned real estate. Section 78-601 Charges Levied. (IC 36-9-23-25). There shall be Stormwater utility user fees assessed on each and every non-residential real estate lot and parcel of property, each and every government parcel of real estate, and each and every residential dwelling unit within the MS4 jurisdiction of the City of Warsaw in order that the Stormwater utility shall collect revenue, which is designed to cover the cost of rendering Stormwater services to the users of the City of Warsaw's storm drain system and shall be the basis of the assessment of the Stormwater user fee. This rate is established so as to maintain adequate fund reserves to provide for reasonably expected variations in the cost of providing services, variations in the requirements for providing such services, as well as future improvements, capital needs, and regulatory requirements. This rate may be evaluated and adjusted, as necessary, with regard to its sufficiency to satisfy the needs of the Stormwater Utility. Exemptions. Parcels that are entirely unimproved and remain natural undisturbed [and shall be exempt from the Stormwater user fee. Railroads and roads are also exempt. Classes of Users. The classes of users of the Stormwater system shall be as follows; A. Residential Unit B. Non-Residential Real Estate Stormwater Rates, Until later revised or amended, the Stormwater Utility shall charge rates due and payable as hereinafter provided and shall be In an amount, per calendar month, as follows: User Class Base Rate Variable Rate Total Per Residential Unit $1.05 $1.90 $2.95 Non-residential $1.05 $1.90 per ERU Variable Unimproved Real Estate No Charge No Charge No Charge Residential owners shall be charged both one base rate and one variable rate per each and every residential unit on the property. Non-residential owners shall pay one base rate per sanitary utility tap (minimum of one (l) per contiguous set of real estate parcels), combined with the variable rate for their actual impervious surface on the parcel(s). Calculations of ERUs will be rounded to the nearest whole number with the minimum number set at one (1) ERU. Section 78-602 Appeals of ERU Determination. A. If, In the opinion of any user, the ERU assigned to the user's real estate parcel inaccurate in light of the number of utility accounts, or impervious area of the property, or whether the user is entitled to a credit, the user shall have the right to contest the ERU determination and thus the Stormwater user fee assessed in accordance with the provisions contained In this section. B. The user shall obtain and complete a "Petition to Appeal Stormwater Assessment" Form Which shall be filed with the Stormwater Utility with verifiable documentation supporting the user's claim. The Utility will have 30 days to investigate the user's claim and, upon review, shall render a written determination that either, the original ERU determination and assessment should be affirmed, or that the user's rate should be adjusted and how much the adjustment should be. C. The determination made by the utility shall be forwarded by mail. The user shall have (15 days from date of receipt to request reconsideration if dissatisfied with the decision of the Stormwater Utility. Any additional facts concerning the dispute shall be reduced to writing and submitted, along with a copy of the original petition and supporting documents, to the City of Warsaw Board of Public Works and Safety. The Stormwater Utility also shall submit a written report of the documentation in the case, along with any documents used, In denying the user's claim or in recommending an adjustment. D. Thereafter, the Board of Public Works and Safety shall review all documentation and conduct an Informal hearing to determine and resolve the dispute based on the documentation submitted and oral testimony. The Board shall issue a determination which shall be binding upon the City of Warsaw Stormwater Utility and the user. The hearing shall be recorded and the minutes of the hearing provided upon request at a cost per page as determined by the secretary for the Board which rate shall be amended from time to time. Any user aggrieved by the final Board determination shall have the right to judicial review of such determination in accordance with Indiana law. E. If a Stormwater user's fee is reduced or eliminated by the Stormwater Utility or the Board of Public Works and Safety, or court of law, the user shall be refunded accordingly for any overpayment made from the earlier of the date the Stormwater user fee assessment was paid or was due and payable. F. A dispute or appeal of a rate or credit determination for Stormwater user fee assessment shall not be a valid reason for non-payment of the originally assessed Stormwater fee. Section 78-603 Credits. As the purpose of a Stormwater utility is to Improve water quality and that purpose 15 accomplished through both public education and infrastructure, the Council may adopt a list of "qualified credits" In a future resolution that encourages users through Incentive (or fee reduction) for best management practices that exceed the most current regulatory stormwater development requirements. Section 78-604 Minimum monthly charges for all users. The minimum charge for any service shall in no event be less than the base fee plus the minimum variable rate as stated In the rate schedule. Section 78-605 Computation of rites for periods less than a month. Service charges for less than a period of one month shall be computed on the basis of the period during which service is rendered. Section 18-606 Charges to City, For services rendered to the city by the utility, the city shall be subject to and pay like rates and charges as provided in this division for governmental users. Section 78-607 Billing, Rates and charges levied under this division shall be billed monthly and shall be due and payable within 30 days after the date set forth In the billing. Billing for Stormwater fees authorized by this ordinance shall be effectuated through a charge appearing on the monthly City of Warsaw Wastewater Utility bill. Section 78-608 Collection, (a) The rates and charges established by this division shall be collected by the city. The Board of Public Works and Safety shall enforce the Indiana statutes for the regulation, collection, rebating or refunding of such rates and charges. (IC 36-9·23·6) (b) It Shall be the duty of the officer charged with the collection of such charges to enforce payment of such charges, together with penalties as provided by Law. All rates and charges not paid within 30 days following the billing date are hereby declared to be delinquent and a penalty of ten percent of the amount of the rates and charges shall thereupon attach thereto. If any such charge shall not be paid for service rendered to any lot, parcel of real estate or building served within 30 days after written notice of the amount due has been given to the owner, such officer shall proceed to enforce payment as directed by the board of public works and safety or as provided by law. (c) The city is authorized to charge each delinquent account for which It flies a lien a delinquent fee In an amount equal to the current fees as established by the county recorder to record the lien and the fee to release the lien, and the fee to certify the lien, plus fees in amount that equal the certified mailing costs associated with the delinquent account. Section 78-609 Establishment of Funds, Fees collected under 36-9-23-26 are considered revenues of the sewage works and shall be paid Into the Stormwater Utility Operating Fund established by this ordinance. Section 78-610 Severability. The terms and provisions of this ordinance are determined to be severable; the Invalidity or unenforceability of any section, sentence, clause, term, or provision of this ordinance shall not affect the validity of any other section, sentence, clause, term, or provision of this ordinance which can be given meaning without such part or parts. Section 78-611 Effective Date. This Ordinance shall be In full force and effect from and after Its passage by the Common Council, approval by the Mayor and publication as required by law. No collections will be made for any billing cycle prior to June 25, 2014. Aye Nay Charles D. Smith Jeff Grose Diane L. Quance Elaine Call Cindy Dobbins William G. Frush Michael Klondaris Presented to and approved by me this 5th day of May, 2014. Mayor Joseph Thallemer, Presiding Officer Common Council, City of Warsaw ATTEST: Lynne Christianen, Clerk-Treasurer 5-8 hspaxlp