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ORD 19-877 ORDINANCE NO. 19-877 AN ORDINANCE of the City of Federal Way, Washington, relating to changing the policy and rate structure for the Storm and Surface Water Utility; amending FWRC 11.40.030, 11.40.100, 11.45.010, 11.45.020, 11.45.030, and 11.45.070; repealing FWRC 11.40.050, 11.40.080, and 11.40.090; and adding a new section to Chapter 11.40 FWRC. (Amending Ordinance Nos. 14-775, 07-571, 06-544, 02-433, 96-277, 91- 117, and 90-32) WHEREAS,Chapter 35.67 RCW authorizes the City to establish a Storm Water Utility;and WHEREAS, the City of Federal Way established a Storm and Surface Water Utility by Ordinance 90-32; and WHEREAS, the Federal Way City Council also established the Storm and Surface Water Utility policy by Ordinance 90-32 to determine a methodology for assessing utility charges; and WHEREAS,the Federal Clean Water Act prohibits discharge of pollutants into waters of the United States (WOTUS); and WHEREAS,the National Pollutant Discharge Elimination System(NPDES)permit program was created by the Clean Water Act to address water pollution by regulating discharges to WOTUS; and WHEREAS, the United States Environmental Protection Agency authorizes State governments to implement the NPDES program; and WHEREAS, the State of Washington Water Pollution Control Law, Chapter 90.48 RCW, regulates discharges from Small Municipal Separate Storm Sewers (MS4s)through the issuance of an NPDES and State Waste Discharge General Municipal Stormwater Permit, referred to as the NPDES Permit; and Ordinance No. 19-877 Page I of 14 WHEREAS, all operators of regulated MS4s are required to apply for and obtain coverage under the NPDES permit; and WHEREAS,the Storm and Surface Water Utility is operated by the City of Federal Way and is a regulated MS4; and WHEREAS, the Storm and Surface Water Utility is responsible for meeting all NPDES Permit requirements,which allows for discharge of water collected within the utility's infrastructure to WOTUS; and WHEREAS, the Storm and Surface Water Utility must also comply with state mandated Underground Utility Damage Prevention Act (Call Before You Dig) requirements pursuant to Chapter 19.122 RCW; and WHEREAS, in response to the continuing need to comply with NPDES Permit and Chapter 19.122 RCW utility locate requirements, the City reexamines its practices on a regular basis to determine whether the existing policies and rate structure adequately support meeting federal and state mandates; and WHEREAS, the Federal Way City Council amended the rate structure of the Storm and Surface Water Utility by Ordinance Nos. 91-117, 02-433, and 14-775 to adequately support the necessary maintenance, operations, and capital improvement of the surface and storm water management system; and WHEREAS, the Federal Way City Council amended the rate structure of the Storm and Surface Water Utility by Ordinance No. 96-277 to include a utility tax to fund a transportation bond levied on the provision of utility services within the City; and Ordinance No. 19-877 Page 2 of 14 WHEREAS,the Storm and Surface Water Utility conducted an evaluation of the rate and rate structure in 2019 and determined that the current rate stricture does not adequately fund the 2019-24 NPDES Permit requirements and 2020-27 Capital Improvement Program; and WHEREAS, the rate structure developed under Ordinance 90-32 was based on tiers of percent impervious surface area; and WHEREAS, the 2019 evaluation of the rate and rate structure identified inequities among customers at the extreme ends of each tiers; and WHEREAS, the 2019 evaluation of the rate structure recommended a new approach that would assess charges based on actual impervious surface area expressed as an Equivalent Service Unit (ESU); and WHEREAS, one ESU shall be equal to the average amount of impervious surface area on single-family residential detached dwelling unit parcels within the City of Federal Way; and WHEREAS,the City conducted an analysis isolating all single-family detached dwelling unit residential parcels in the database and applied a random number generator equation to all these parcels in order to generate a random parcel list from which the average impervious surface area was calculated; and WHEREAS, the value of the average impervious surface area of single-family residential detached dwelling unit parcels was calculated to be 3,200 square feet; and WHEREAS,under the ESU system,the Storm and Surface Water Utility charge assessed to all other parcels, i.e.,non-single-family detached dwelling unit residential and commercial parcels,is based on the measured actual impervious surface area, expressed as a number of ESUS and calculated as a dollar amount per ESU; and Ordinance No. 19-877 Page 3 of 14 WHEREAS, adequate and appropriate rates are necessary for the operation, maintenance, repair, and rehabilitation of failing infrastructure, as well as capital improvements of the storm and surface water management system; and WHEREAS, the Federal Way City Council finds it is in the best interest of the citizens to change the utility rate policy and structure as outlined in Chapters 11.40 and 11.45 FWRC,effective January 1, 2021 through December 31, 2028, to fully and adequately support the City's Storm and Surface Water Utility needs and to calculate rates and charges using a more equitable methodology. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF FEDERAL WAY, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. FWRC 1 1.40.030 is hereby amended to read as follows: 11.40.030 Developed properties. It is the finding of the city that developed properties contribute to an increase in surface and stormwater runoff to the surface and stormwater management system, i.e., the city's MS4. This increase in surface and stormwater runoff results in the need to establish rates and charges to finance the city's activities in stormwater and surface water management. Developed properties shall be subject to the rates and charges of the surface water management utility based on their contribution to increased runoff. The factors to be used to determine the degree of increased surface and stormwater runoff to the surface and stormwater management system from a particular parcel shall be based onthe pe-eeiitage ^r impervious surface area expressed as Equivalent Service Units, as defined in FWRC 11.40.035eovefage en the pfepeFty and the total aefeage ef the patvel. Section 2. Chapter 11.40 of the Federal Way Revised Code is hereby amended to add a new section 11.40.035 to read as follows: Ordinance No. 19-877 Page 4 of 14 11.40.035 Equivalent Service Units. It is the finding of the city that the rate structure developed under Ordinance 90-32 was based on tiers of percent impervious surface area and does not adequately correlate the impact of impervious surface to the stormwater drainage system and the rate structure perpetuates inequities among customers at the extreme ends of each tier;therefore,the Storm and Surface Water Utilitycharge will be assessed based on actual impervious surface area expressed as an Equivalent Service Unit(ESU). An ESU shall be equal to the averag-c amount of impervious surface area on single-family residential parcels within the City of Federal Way. Impervious surface area includes the single-family residence, driveway, walkway, paved areas, and other surfaces that do not allow penetration of stormwater runoff into the ground. The ESU value for the City of Federal Way has been calculated to be 3,200 square feet. Section 3. FWRC 11.40.050 is hereby repealed in its entirety. Section 4. FWRC 11.40.080 is hereby repealed in its entirety. Section 5. FWRC 11.40.090 is hereby repealed in its entirety. Section 6. FWRC 1 1.40.100 is hereby amended to read as follows: 11.40.100 Road systems. It is a finding of the city that city,county and state roads contribute a significant amount of increased runoff to the surface and stormwater management system, which contributes to the need for basin planning, storm drainage control facilities and other related services. However, the city and county roads and state highway programs provide substantial annual programs for the construction and maintenance of storm drainage control facilities, and the roads systems and their associated storm drainage facilities serve as an integral part of the surface and stormwater management system. The Ordinance No. 19-877 Page 5 of 14 rate charged city and county roads and state highways shall reflect the benefit which city and county roads and state highway facilities provide to the surface and stormwater management system and therefore will exclude any system costs associated with capital improvements and on-site retention/detention facility maintenance. The enrage of impen,ieus s ,,.f ee eavefage for-eity nd eounty roads and state highways shall be ealettlated by dividing aver-age width of feadway a shoulder- by the avefage width of the fight of way. The ser-viee eharge shall be deteffflified ffitiltiplying the aer-es of read and highway right of way within the sefviee afea times the fate per-aer-e identify . Section 7. FWRC 11.45.010 is hereby amended to read as follows: 11.45.010 Basis for rate structure. The sere Storm and Surface Water Utility charges shall be based on the relative contribution of increased surface and stormwater runoff from a given parcel to the surface and stormwater management system. f em the par-eel to the stir-faee and ster-fn ater- maflageffient systeffi. Impervious surface area is an appropriate measure of a property's contribution of runoff, and provides a rational nexus to service received from a surface water management Zent program;therefore,the Storm and Surface Water Utility charge shall be based on impervious surface area. The relative contribution of increased surface and stormwater runoff from each parcel determines that parcel's share of the service charge revenue needs. The service charge revenue needs of the utility are based upon all or any part, as determined by the council, of the cost and expense within the service area of maintaining and operating stormwater control facilities, all or any part of the cost and expense of planning, designing, Ordinance No. 19-877 Page 6 of 14 establishing,acquiring,development,constructing and improving any of such facilities,or to pay or secure the payment of all or any portion of any issue of general obligation or revenue bonds issued for such purpose. Section 8. FWRC 1 1.45.020 is hereby amended to read as follows: 11.45.020 Methodology for determining service charge. The public works director shall determine the Storm and Surface Water Utilityservi-ee charge for each parcel within the service area by the following methodology: (1) Single-family residential detached dwelling unit parcels: The utility shall impose a uniform rate on parcels with a single-family residential detached dwelling unit use for the reasons set forth in Chapter 11.40 FWRC and because tracking parcel-specific measurements of impervious area for single-family residential detached dwelling units would add considerable administrative effort and complexity to the rate structure, the rate shall be based on an estimated average amount of impervious surface area. This average amount of impervious surface area shall be represented by single Equivalent Service Unit(ESU). Using a random sampling,of single family detached dwelling unit parcels within the City, it has been determined that the average impervious surface area of single-family residential detached dwelling unit within the City of Federal Way to be 3,200 square feet;therefore the value of a single ESU is determined to be 3,200 square feet of impervious surface area. To qualify for the charge set forth in this subsection, the single-family residential detached dwelling unit use must be the primary use on the parcel,as determined by the public works director, and not accessory to any other use on the parcel.Residential and ver-y light r esidential par-eels shall feeeive a flat fate ser-viee ehar-ge f6i:the reasons set feAh in Chapter- 11.40 PAI Ordinance No. 19-877 Page 7 of 14 (2) All other parcels: The charge basis for all other parcels,i.e.,those parcels that do not qualify for the charge described in subsection (1) of this section, will be measured by the actual impervious surface area expressed as a number of ESUs.The rate will be calculated as a dollar amount per ESU as set forth in FWRC 11.45.030.D^ els shall be elassified inte the -te ate in i AIRG 11.n 5.03 0 by their-,-,e feentage of iffiperyious s f f ee ,-age.. (3) Land use codes and data collected from parcel investigations will be used to determine each parcel's per=entage of-impervious surface areaeever-age. b will be eaieulated by fflultiplying the total aet!eage of the parcel times the fate for-that eategefy. Section 9. FWRC 11.45.030 is hereby amended to read as follows: 11.45.030 Service area annual service charge. There is hereby imposed upon all developed properties an annual Storm and Surface Water Utility charge based on the methodology in FWRC 11.45.020 , expressed as a number of ESUs multiplied by the rate shown", the : al se ehar-ge f r 201-5-as follows: *Annual Rate per ESU **(Excluding Utility Tax) $140.54 $153.18 $166.97 $182.00 $198.38 $216.23 $235.69 $256.90 ***City and County or State Hi hwa s N/A N/A N/A N/A N/A N/A N/A N/A This table shall be in effect starting January 1, 2021 through December 31, 2028. Ordinance No. 19-877 Page 8 of 14 Rate�pareel(p) flue }W� C-16;9;9 Pei ao {4#Yeav Light (L)** 'zo 20-07v $1.797 $13.87 (A) T rg#t(i–)** 40-2"0 $200.46+A4 ��_[� M9c .,r2izc (N4)** X20 45��8 $36 $28..40 (A) Mede to RA4 * 24--4-5-OA 1 own Modefately hems+-(N4]4}** 45 a r feller-etely heavy i ±�LA 4-5 31 $79+-.804A4 Heavy (H)** 65 83-07; Heavy>'�rC 65--9-5-OA $99843 ( ri ** 83 100-07; $1,166.06 ( ) $90 Vefy hl-ay. (N'u)** 85-10"o $1,305.99 (n) $101.21 NA NA State highways- NA *** NA * Rate expressed in dollars per Equivalent Service Unit (ESU) - Parcels with a primary single-family residential detached dwelling unit use = 1 ESU regardless of impervious area. -All other parcels, i.e.,parcels without a primary single-family residential detached dwelling unit use = 1 ESU per 3,200 impervious square feet. Ordinance No. 19-877 Page 9 of 14 ** The rate shown does not include the Cid of Federal Way utility tax assessed on the total charge. The total Storm and Surface Water Utility charge assessed to each customer is calculated as follows: (Annual Rate x total ESU(s)) + City Utility Tax assessed on the total charge. Par-eel is owned by and is the pefsenal fesidenee of a pefson or-pefsens determined by the publi-e 84.3 6381 the p of shall be exempt f offl the sefviee ..1,.fge ** sei=�,iee ehar-ge fer- 2015 faf mobile home pafks shall be $38.53 (titility tax inelidded) times per-t ntiffiber-of mobile heffle spaces. *** The rate charged to the State Department of Transportation will be determined in accordance with RCW 90.03.525. Beginning in 2016 and eaeh year-ther-eaftef,the annual sen4ee ehar-ge shall iiiefease by the june of the pfeeediiig yeaf. Section 10. FWRC 11.45.070 is hereby amended to read as follows: Requests for rate adjustment may be granted or approved by the public works director only when one of the following conditions exists: (1) The parcel is owned and is the personal residence of a person or persons determined by the public works director as qualified for a low-income senior citizen property tax exemption authorized under RCW 84.36.381_;Pparcels qualifying hereunder shall be exempt from all charges imposed in FWRC 11.45.010 through 11.45.050.; Requests for adjustments under this condition must be submitted annuallyto the public works director; Ordinance No. 19-877 Page 10 of'14 (2) The aefeage ESU based on impervious surface area assigned to a e4lie-parcel aged-is in error; (nl�l=c 1 is nenfesidential and the par-eel meets the definition of pen spaeee in ice v RG 11.35.010. Pr-opefty Epdalif�,ing under-this division will be ehar-ged only fbf the afea of ifflpefvi stiffaee and at the fate whieh the paFeel is elassifiedunder using the total par-eel aefeage; the light rate eategefy qualifying undef this division shall be ehafged at the fate ef Ofie lower Fate in the light eategefy qualifying undef this division shall be ehafged 40 pefeent of the euffent light eategefy fate, pef aefe -per- yeaf (plus utility tax). Residential par-eels afid par-eels in the vefy li& eategefy qualifying under-this divisien shall be ebar-ged 50 pefeent of the etir-fent pef par-eel pef yeaf fate (plus utility to � > eFeek, lake, pond or—wetland that has been identified in an adopteld > pfevided, that the paFeel ownef: Etualifying undef stibseetions (5) and (6) of this seetion shall feeeive only one fate elass diseoun�., „b.;..l-,eye f;s the eatyT Ordinance No. 19-877 Page 11 of 14 (7) A par-eel is divided by the boundar-y of the se. --and the imper-vious sui:faees ef the paf afe etitside of the sefviee area. Wepefty qualifying hefetinder- shall be exeffipt f+effl the fates afid ehar-ges of the or-dinanei—, (38) A parcel is divided by the boundary of the service area, and the impervious surfaces of the parcel are outside of the service area, and the drainage from the parcel is outside of the service area; par-eels qualifying hefeunder-shall be chafges as other-wise pfevided herein en the basis of the lan (49) The rate or service charge is otherwise erroneous in applying the terms of this division; (54-8) A parcel is served by a stormwater treatment facility which holds a current national pollutant discharge elimination system (NPDES)permit under the authority of the Clean Water Act of 1982, Section 402,specifically for the treatment of stormwater from the parcel and such system discharges directly into Puget Sound,without in any way utilizing any other stormwater conveyance or storage facilities. Parcels qualifying hereunder will be charged only for the area of impervious surface not served by the stormwater treatment facility and at the to based upon the unsefved peftior Of the Pfffm; (644) A parcel is owned or leased by a public school district ander provides activities thatYA4eh directly benefit the surface water management utility. The activities may include curriculum specific to the issues and problems of surface water management,and student activities in the community to expose students to the efforts required to restore,monitor or enhance the surface water management system. The amount of the rate adjustment shall be determined by the public works director based upon the cost of the activities to the school district but not to exceed 50 percent of the assessed Storm and Surface Water Utility chargethe value of the etivity to the s „-f ee wate f „ nt Ordinance No. 19-877 Page 12 of 14 i . The rate adjustment for the school district activity maybe applied to any parcel in the service area which is owned or operated by the school district. Section 11. Severability. Should any section, subsection, paragraph, sentence, clause, or phrase of this ordinance,or its application to any person or situation,be declared unconstitutional or invalid for any reason, such decision shall not affect the validity of the remaining portions of this ordinance or its application to any other person or situation. The City Council of the City of Federal Way hereby declares that it would have adopted this ordinance and each section, subsection, sentence, clauses,phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional. Section 12. Corrections. The City Clerk and the codifiers of this ordinance are authorized to make necessary corrections to this ordinance including, but not limited to, the correction of scrivener/clerical errors, references, ordinance numbering, section/subsection numbers and any references thereto. Section 13. Ratification. Any act consistent with the authority and prior to the effective date of this ordinance is hereby ratified and affirmed. Section 14. Effective Date. This ordinance shall take effect and be in force five(5)days from and after its passage and publication, as provided by law. PASSED by the City Council of the City of Federal Way this 1 st day of October, 2019. [signatures to follow] Ordinance No. 19-877 Page 13 of 14 CITY OF FEDERAL WAY: JIM Le, X!XY O- R ATTEST: A hi'lla Am rbpf.A.. Sf,LkIIANIE COURTNEY, (JC, CITY CLERK APPROVED AS TO FORM: J. RYAN CALL, CITY ATTORNEY FILED WITH THE CITY CLERK: 09/11/2019 PASSED BY THE CITY COUNCIL: 10/01/2019 PUBLISHED: 10/04/2019 EFFECTIVE DATE: 10/09/2019 ORDINANCE NO.: 19-877 Ordinance No. 19-877 Page 14 of 14