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HomeMy WebLinkAboutOrdinance 6825113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Ordinance: 6825 File Number: 2024-0687 STORMWATER MANAGEMENT AND WATER QUALITY FUNDING (ADOPTION): AN ORDINANCE TO ENACT CHAPTER 52: STORMWATER MANAGEMENT UTILITY FEE INTO THE FAYETTEVILLE CODE OF ORDINANCES WHEREAS, during the last two decades, the frequency and intensity of major rain storms striking Fayetteville has continued to increase dramatically; and WHEREAS, the City of Fayetteville has worked diligently with our available revenues to improve and enhance our stormwater management facilities, but unfortunately flooding problems have continued as global warming has increased and created ever larger rain storms threatening to overwhelm our existing stormwater management facilities; and WHEREAS, the City Council of Fayetteville has enacted improved stormwater management requirements for new developments, but yet even larger and continual investments into the City's stormwater management facilities are necessary to better handle the increasing rain storms that continue to intensify in number and in the amount of rainfall they deliver to Fayetteville; and WHEREAS, state law now authorizes cities to enact Stormwater Management Utilities to equitability, fairly, and efficiently raise revenue needed to fund necessary stormwater management facilities to better protect citizens' homes, businesses, and institutions from the increasing dangers of flooding that we face now and which is likely to continue increasing in the future; and WHEREAS, the proposed Stormwater Management Utility Fee Chapter has been carefully crafted to ensure it is fair and reasonable and bears a reasonable relationship to the benefits conferred on those paying for and receiving its services. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby determines and finds that Chapter 52: Stormwater Management Utility Fee with its Sustainable Credit Framework provision is fair and reasonable and bears a reasonable relationship to the benefits conferred on those paying for and receiving its services. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby enacts Chapter 52: Stormwater Management Utility Fee into the Fayetteville Code of Ordinances. Page 1 Ordinance: 6825 File Number: 2024-0687 PASSED and APPROVED on December 17, 2024 Attest: G. GAY Y p;' :G', WA -�: FAYETTEVILL. �" Kara Paxton, City'Clerk Treasurer ; This publication was paid for by the City Clerk -Treasurer of the City of Fayetteville, Arkansas. Amount Paid: $ 185.44 Page 2 CITY OF FAYETTEVILLE ARKANSAS MEETING OF DECEMBER 17, 2024 CITY COUNCIL MEMO 2024-0687 TO: Mayor Jordan and City Council THRU: Chris Brown, Public Works Director FROM: Alan Pugh, Staff Engineer SUBJECT: Adoption of Chapter 52, Stormwater Management and Water Quality Utility, of the City of Fayetteville Code or Ordinances establishing a Stormwater Management and Water Quality Fund. RECOMMENDATION: Staff recommends adoption of Chapter 52, Stormwater Management and Water Quality Utility, of the City of Fayetteville Code or Ordinances establishing a Stormwater Management and Water Quality Fund BACKGROUND: Like many cities throughout the state and nation, the City of Fayetteville experiences issues with management of its stormwater utility system. These issues stem from many sources including, but not limited to, compliance with the mandated Municipal Separate Stormwater System (MS4) requirements, aging infrastructure, maintenance of system capacity, personnel to perform systematic inspections and the lack of formal drainage systems in many older areas of the City. To address these concerns, the City has historically funded the stormwater program through the Sales Tax Capital Improvement Program (CIP) and the Street Fund for capital and operational/maintenance functions, respectively. However, there are many needs within the City that require funding from these sources and, at least in recent years, the funding for stormwater has been inadequate to comprehensively address stormwater management within the City. To develop a comprehensive solution, additional funding is required for personnel and equipment as well as multiple capital projects, many of which will require more than $1 million dollars for each project. Given the current levels, it would take many years to address just one of those projects. In June 2018, the City Council recognized these needs and approved a consultant contract for a feasibility study (Resolution 131-18) and amended that agreement on two occasions (Resolutions 209-19 and 250-19) to provide additional investigation and details. That study was completed in August 2019 and updated in 2022 with more recent program costs, impervious area and associated fees. The Council also passed a resolution of intent to establish a stormwater utility in July 2022 (Resolution 157-22). DISCUSSION: The study recognized several areas that are currently underfunded, with the gap between the funding and actual costs to provide the services increasing every year. These needs include categories such as: operation and maintenance engineering and planning regulatory compliance Mailing address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 • capital improvement projects The costs associated with these categories were based on a level and extent of service agreed upon by council early in the program discussions as well as estimates of future regulatory compliance costs and expansion of the stormwater system as Fayetteville continues to grow. The costs associated with the recommended stormwater utility program can be found below. 'rogram Costs Current Budget Additional Needs Total Program >peration and $998,441 $1,508,000 $2,506,441 laintenance ngineering and Planning $67,000 $122,000 $189,000 ;egulatory Compliance $193,000 $274,000 $467,000 tormwater CIP $200,000 $913,400 $1,113,400 ,dministrative $0 $324,000 $324,000 otal $1,458,441 $3,141,400 $4,599,841 In response to the completed study and the need to find a sustainable funding source for the stormwater management program, City staff has drafted Chapter 52, Stormwater Management and Water Quality Utility, for consideration by City Council. The proposed ordinance would establish an equitable funding source based on impervious areas, which can be directly correlated to the impact of any given property to the stormwater system. The fee is proposed to be billed to sewer users with the City limits in a tiered system. Properties with greater impervious areas would have a higher fee than smaller properties due to the increased impact to the system. If there are multiple sewer customers on a single property, the total impervious area would be allocated across those customers and the appropriate portion of the total fee billed to each customer. The proposed fee would provide funding, in addition to that already being allocated from existing sources, to operate and maintain as well as improve and expand the stormwater system. The fee tiers are as shown below. Tier Tier Range (by square footage of impervious area on a property) 1 0:52,000 2 >2,000 to <_ 3,500 3 >3,500 to <_ 5,000 4 >5,000 to <_ 6,500 5 >6,500 to s 8,000 6 >8,000 Billing Units Initial Monthly Fee ($1.35 per unit) 1.25 $1.69 2.75 $3.71 4.25 $5.73 5.75 $7.76 7.25 $9.79 Per Calc Billing Unit x Rate This fee will close the existing funding gap and will fund a program to adequately manage stormwater within the City of Fayetteville. The proposed program presents a sustainable and equitable method of funding. Staff have worked closely with the City Attorney's office throughout the process and has modified the program to address the concerns that have been raised. Staff have also worked to clarify the impact of this ordinance on the residents of Fayetteville. With the previous resolution of intent to implement the stormwater utility, the council also approved additional funding to complete the utility billing database and billing tool that would allow residents to search for their address and determine the proposed fee. This tool was made available on November 7, 2024, and the sanitary sewer account holders were notified by email if one was on file with the City or post card if no email was available. Mailing address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 This process also allowed staff to take a closer look at the previously identified approximately 13% of the impervious area that was not previously allocated to a property with a sanitary sewer account. Each property was looked at individually during this process and the majority were able to be linked to an adjacent parcel. Currently, 7% of properties with impervious area have not been linked to a parcel with sanitary sewer service. These can be attributed to properties on the fringes of the City that may have a water service but be on septic, stand-alone parking areas and those properties that are exempted at the advice of the City Attorney. BUDGET/STAFF IMPACT: The proposal would initially generate approximately $3 million in additional funding to be allocated to the Stormwater Management and Water Quality program. ATTACHMENTS: SRF (#3), Revised Exhibit A - Stormwater Management Utility Fee - Amended 12.17.24, Letter of Support Stormwater Utility BWA (#5), Stormwater Article from Source (#6), IRWP Letter of Support Fayetteville Stormwater Utility (#7), Resolution of Intent to Enact Stormwater Fee — May 21, 2024 (#8), FYAC - Letter of Support (#9), City Attorney Memo 12-04-24 (#10), City Attorney Memo - Final Proposed Amendments to Exhibit A Stormwater Managment Utility Fee Chapter (#11), DO NOT CODIFY - Old Exhibit A - Stormwater Management and Water Quality (#4) Mailing address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Legislation Text File #: 2024-0687 Adoption of Chapter 52, Stormwater Management and Water Quality Utility, of the City of Fayetteville Code or Ordinances establishing a Stormwater Management and Water Quality Fund. AN ORDINANCE TO ENACT CHAPTER 52: STORMWATER MANAGEMENT UTILITY FEE INTO THE FAYETTEVILLE CODE OF ORDINANCES WHEREAS, during the last two decades, the frequency and intensity of major rain storms striking Fayetteville has continued to increase dramatically; and WHEREAS, the City of Fayetteville has worked diligently with our available revenues to improve and enhance our stormwater management facilities, but unfortunately flooding problems have continued as global warming has increased and created ever larger rain storms threatening to overwhelm our existing stormwater management facilities; and WHEREAS, the City Council of Fayetteville has enacted improved stormwater management requirements for new developments, but yet even larger and continual investments into the City's stormwater management facilities are necessary to better handle the increasing rain storms that continue to intensify in number and in the amount of rainfall they deliver to Fayetteville; and WHEREAS, state law now authorizes cities to enact Stormwater Management Utilities to equitability, fairly, and efficiently raise revenue needed to fund necessary stormwater management facilities to better protect citizens' homes, businesses, and institutions from the increasing dangers of flooding that we face now and which is likely to continue increasing in the future; and WHEREAS, the proposed Stormwater Management Utility Fee Chapter has been carefully crafted to ensure it is fair and reasonable and bears a reasonable relationship to the benefits conferred on those paying for and receiving its services. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby determines and finds that Chapter 52: Stormwater Management Utility Fee with its Sustainable Credit Framework provision is fair and reasonable and bears a reasonable relationship to the benefits conferred on those paying for and receiving its services. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby enacts Chapter 52: Page 1 Ordinance: 6825 File Number: 2024-0687 Stormwater Management Utility Fee into the Fayetteville Code of Ordinances. Page 2 Chris Brown Submitted By City of Fayetteville Staff Review Form 2024-687 Item ID 11/19/2024 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 10/30/2024 ENGINEERING (621) Submitted Date Division / Department Action Recommendation: Adoption of Chapter 52, Stormwater Management and Water Quality Utility, of the City of Fayetteville Code or Ordinances establishing a Stormwater Management and Water Quality Fund. Account Number Project Number Budgeted Item? No Does item have a direct cost? No Is a Budget Adjustment attached? No Budget Impact: Fund Project Title Total Amended Budget $ - Expenses (Actual+Encum) $ - Available Budget Item Cost $ - Budget Adjustment $ - Remaining Budget V20221130 Purchase Order Number: Previous Ordinance or Resolution # Change Order Number: Approval Date: Original Contract Number: Comments: EXHIBIT A CHAPTER 52: STORMWATER MANAGEMENT UTILITY FEE ARTICLE I — GENERAL PROVISIONS 52.01- Purpose The Stormwater Management Utility Fee is hereby established to create an equitable, efficient, and dedicated funding source for stormwater management services in the City of Fayetteville and provide for the safety, preserve the health and promote the prosperity of Fayetteville residents, businesses and institutions. The Stormwater Management Utility Fee is further needed: (A) To establish an equitable, fair, efficient and dedicated funding source for stormwater management services in the City of Fayetteville, Arkansas in addition to other taxpayer funds so that better long- range planning can be achieved. (B) To provide essential improvements and enhancements to the city's stormwater management facilities necessitated by substantially increased flooding caused by global warming and climate change as evidenced recently in North Carolina, Madrid Spain, and many other locations. (C) To lessen or deter hazards to persons, property and the environment caused by increased runoff, obstructions to drainage and introduction of excessive silts, debris and pollutants into the drainage system, lakes, ponds, streams, rivers and other water bodies in the City of Fayetteville, and to otherwise promote the public health, safety and welfare of the public. (D) To fund the City's MS4 Stormwater Management Program for which it is expected to implement a series of minimum control measures and report on their progress annually. In addition to new measures with each 5-year permit renewal, the City is projected to meet the population threshold of 100,000 by 2030 and could be designated a medium MS4 community, triggering additional mandated activities. (E) To administer the National Flood Insurance Program and its Community Rating System which provides property owners with credits to reduce their flood insurance premiums, (F) To equitably and legally address drainage needs, also known as stormwater management, to protect public health, safety, and welfare and to reduce flooding on city streets thereby ensuring access of emergency vehicles to all properties within the City during flood events, by providing resources for construction, maintenance, and operation of stormwater facilities. (G) To implement additional watershed improvements of the City's waters in general, and specifically, that of Beaver Lake, the City's drinking water source, and the Illinois River. 52.02 - Definitions The following definitions shall apply to this chapter: Billing Unit shall mean the unit by which stormwater utility bills are calculated. A single billing unit shall be equal to 1,000 square feet of impervious area. Customer shall mean all persons or entities to whom the Stormwater Management Utility Fee is properly billed. A customer is further defined as a person or an entity billed for sanitary sewer services within the City limits. CHAPTER 52. STORMWATER, FLOOD MANAGEMENT UTILITY Credit shall mean a conditional, renewable reduction in the amount of the fee owed by a customer in accordance with the Sustainable Credit Framework. Impervious surface or area means a surface or area that allows little, if any, stormwater to penetrate to the soil under such surface. 50% of all gravel areas are deemed impervious for this chapter. A City right- of-way on which an impervious surface has been paved or otherwise placed, such as city sidewalks, city trails, and city drainage facilities shall not be counted as an impervious area for the underlying property owner when determining the total impervious area for the Stormwater Management Utility Fee. Public customer shall mean a local public agency including property of a school district within the City of Fayetteville. Public Stormwater System shall mean all stormwater conveyance systems and appurtenances located within the City of Fayetteville right-of-way or public drainage easements. All other stormwater conveyance systems and appurtenances shall be considered Private Stormwater Systems. Stormwater Management Utility Fee is the fee applicable to all real property within the City of Fayetteville, Arkansas which is billable to the City's Sewer Utility customers except for agencies of the State of Arkansas, Federal Government, and Washington County owned structures. Tax-exempt customer shall mean those private organizations that qualify for property tax exemptions under the Arkansas Constitution, Article 16, § 5, based on actual use. Examples include churches, cemeteries as well as property used exclusively for public charity. 52.03 - Applicability (A) This chapter shall apply to all real property within the jurisdiction of the City of Fayetteville, Arkansas for which sanitary sewer is provided upon which a city stormwater utility fee ordinance may be enforced. The Stormwater Management Utility Fee shall not be assessed against the University of Arkansas, other State Agency property, Federal Agency property, Washington County property, or the runways and taxi ways of the Fayetteville Executive Airport. (B) City -owned real property constituting the municipal drainage system, including public streets, public rights -of -way, drainage facilities, and related infrastructure is not served by a sanitary sewer and thus is not subject to a stormwater utility fee. (C) The requirements of this chapter do not relieve landowners, developers, other individuals, and entities from their responsibility for complying with the obligations of other portions of the Unified Development Code. 52.04-52.05 - Reserved ARTICLE II - STORMWATER MANAGEMENT UTILITY FUND 52.06 - Establishment of a Stormwater Management Utility Fund Pursuant to A.C.A. § 14-235-201 and other state law, the City of Fayetteville hereby creates a fund entitled the "Stormwater Management Utility Fund" for the purpose of segregating, identifying, and controlling revenues and expenses for operation of the City of Fayetteville Stormwater Management CHAPTER 52. STORMWATER, FLOOD MANAGEMENT UTILITY -2- Program and other storm -related equipment, construction, materials, supplies or services attributable to these functions. The following revenue sources shall be deposited in said fund: (A) All revenue collected by or on behalf of the Stormwater Management Utility Fee. (B) Revenue from contributions in -lieu of onsite detention or from developers as contributions for required off -site drainage improvements, which may include bridge assessments. (C) Any interest earned on monies held in the Stormwater Management Utility Fund. (D) Any other revenue as may be determined appropriate by the City Council, including but not limited to general revenue, bond and grant proceeds. These revenues shall be used exclusively for the purposes listed in Article I — General Provisions. 52.07 - Authorization of a Stormwater Management Utility Fee The Stormwater Management Utility Fee is a utility fee that is hereby authorized to be charged on most real property within the City of Fayetteville, Arkansas. The fee shall be billable to the City's Sewer Utility customers. The rate structure for the utility fee shall: (A) Be based on the square footage of impervious area on a property, (B) Be owner / customer -neutral, (C) Use a billing unit of 1,000 square feet of impervious area, (D) Slot property within the following six -tier billing unit structure: Tier Tier Range (by square footage of impervious area on a property) Billing Units Initial Monthly Fee 1 Less than 2,000 1.25 $1.69 2 2,001 to 3,500 2.75 $3.71 3 3,501 to 5,000 4.25 $5.73 4 5,001 to 6,500 5.75 $7.76 5 6,501 to 8,000 7.25 $9.79 6 More than 8,000 See (F) See (F) (E) For Tiers 1 through 5, the billing unit in the chart shall be multiplied by the billing rate per unit rounded down to the nearest cent. (F) For Tier 6, properties with impervious area greater than 8,000 square feet, the actual impervious area is divided by 1,000 and multiplied by the monthly rate per billing unit. (G) The initial rate per billing unit shall be $1.35. This rate shall be increased by 3% per year beginning in the January 2026 billing period. No rates shall increase after 2031 without a further rate study. (H) Fees for sewer customers on properties with multiple sewer accounts shall be based on the individual sewer customer's percentage of total impervious area of the property or properties that may be attributed to the customer's account, included any areas of parking, common use areas, or other impervious area on the attributable properties. (1) Sewer customers or property owners may apply to have the fee for their property mitigated or reduced by the Sustainable Credit Framework. CHAPTER 52. STORMWATER, FLOOD MANAGEMENT UTILITY -3- 52.08 - Collection of the Stormwater Management Utility Fee The Stormwater Management Utility Fee shall be placed for required payment and collection upon all established City utility bills on which the City may constitutionally and legally assess such Stormwater Management Utility Fee beginning with the August, 2025 utility bills provided to utility customers. The Stormwater Management Utility Fee shall continue to be collected every month thereafter with such Stormwater Management Utility Fee increasing by three percent (3%) in January 2026 and annually thereafter through 2031. Any additional increases after 2031 shall require another rate study before implementation. 52.09 — Level and Extent of Service Policies The level of services funded by the Stormwater Management Utility Fees are dependent upon the amount of revenue generated by this Utility Fee, as well as possible general fund, sales tax bond, grants and other sources. These revenues shall fund the operation and maintenance, engineering and planning, regulatory compliance, stormwater capital improvements and administration of the City of Fayetteville's MS4 Program. The most recently adopted version of the City of Fayetteville Drainage Criteria Manual and Green Stormwater Practices will serve as the basis for the extent of stormwater service related to: (A) Public roads, public rights of way and public detention ponds, (B) Drainage features within existing dedicated public easements (excluding private commercial detention ponds). (C) These services extend to the downstream end of the first private infrastructure connected to the City of Fayetteville's drainage system. (D) Prior to City accepting responsibility for any private stormwater system, its owner must dedicate a drainage easement to the City of sufficient size as determined by the City to allow access to and work on the drainage facilities with appropriate equipment. 52.10 - Reserved ARTICLE III -ADMINISTRATION 52.11- Administration and Appeals (A) The City Engineer is responsible for the administration of this chapter. (B) A city sewer customer (an owner or tenant of any property within the City receiving sewer service from the City) which is subject to the Stormwater Management Utility Fee in August of 2025 may appeal the initial Stormwater Management Utility Fee assessed amount for their property to the City Engineer who will review the following: 1) The amount of impervious surface of the property and the proper amount of the Stormwater Management Utility Fee charged for this impervious surface. 2) The amount initially allowed for any Stormwater Management Utility Fee credit or the denial of any legal or constitutional exemption or defense to the payment of such Stormwater Management Utility Fee. 3) Any allegation or claim that the affected city sewer customer asserts that the Stormwater Management Utility Fee may not be legally or constitutionally assessed against their property. 4) Such appeal to the City Engineer shall be in writing, shall designate all of the city sewer customer's objections and claims against the amount assessed, the amount of credit CHAPTER 52. STORMWATER, FLOOD MANAGEMENT UTILITY -4- allowed, any legal or constitutional arguments that this fee violates the city sewer customer's rights, and shall be signed by the city sewer customer (tenant if applicable and also by the property owner or the legal and proper agent for trusts, LLCs, corporations and other non -human entities owning the property). 5) Such appeal must be filed in the Development Services Office no later than thirty (30) calendar days after the utility bills containing the Stormwater Management Utility Fee applicable to their property were distributed to the property owner or city sewer customer in August of 2025. 6) The City Engineer shall provide the written response and conclusions concerning all objections or claims presented by the appealing owner to the sewer customer's address currently used for utility bills by first class mail or to the owner's mailing address (if different) or by email if the owner has supplied this to City Engineer. (C) Should the appealing owner disagree or feel aggrieved by the written decision of the City Engineer, the property owner may appeal the City Engineer's decision to the Fayetteville City Council. 1) All appeals shall be submitted in writing to the Fayetteville City Clerk/Treasurer's Office within ten (10) business days from the date that the City Engineer rendered and sent the decision to the appellant. 2) All appeals shall explain why the appellant contends that the City Engineer's decision was in error. The appellant should include all of its claims, including any legal or constitutional arguments that would render the Stormwater Management Utility Fee invalid as applied to this appellant. (D) The City Engineer (and on appeal the City Council) may consider whether the property whose owner is appealing from some or all of the Stormwater Management Utility Fee requirements has: 1) Unique topography that could limit or affect the amount of benefits from the City's improving stormwater management measures; and 2) Existing and well -maintained private stormwater management facilities that do not now concentrate nor direct excessive stormwater to the potential harm of downhill neighbors or city stormwater management facilities; and 3) Proper plans to alter any existing private stormwater management facilities and agrees to promptly and fully construct such facilities to reduce or prevent excessive stormwater from harming downhill neighbors or the city stormwater management facilities. (E) If the City Engineer (and on appeal the City Council) determines that the Stormwater Management Utility Fee is fair and reasonable and bears a reasonable relationship to the benefits conferred upon the owner of this property, then the full amount of the Stormwater Management Utility Fee should be required to be paid (less any credits). If not, then the City Engineer and/or City Council shall determine the proper amount of the fee that would be fair, reasonable and bear a reasonable relationship to the benefits conferred and establish that amount as the proper Stormwater Management Utility Fee for this owner's property. 52.12 - Sustainable Credit Framework (A) A Sustainable Credit Framework will be established by the City Council that provides all Stormwater Management Utility customers with an opportunity to reduce their normal fees. Customers may qualify for renewable fee reductions by demonstrating activities or stormwater practices that increase the water quality and thereby reduce the water quality and quantity burden imposed on the City of Fayetteville's drainage system. A maximum of 75 percent credit may be achieved by one or more of the following: (1) Compliance with the City's Drainage Criteria Manual for water quality, channel protection, and flood protection. CHAPTER 52. STORMWATER, FLOOD MANAGEMENT UTILITY -5- (2) Compliance with an industrial or institutional stormwater permit. (3) Public customers that establish contracts, or Interlocal Cooperation Agreements, with the City under § 25-20-104 will receive a credit recognizing the value of their public efforts to reduce stormwater runoff, in accordance with the terms of the interlocal agreement. (4) Using shared parking lots to minimize the creation of new impervious area. (5) Property retrofits using Water Quality, Flood, and Tree Mitigation Measures from the Drainage Criteria Manual. (6) Tax-exempt customers can apply for credits for approved Stormwater Education Program and Stormwater Stewardship Activities. (B) The final Sustainable Credit Framework, including appropriate application forms and instructions, will be developed and available to customers a minimum of four (4) months in advance of the effective date of the initial collection of the Stormwater Management Utility Fee. 52.13 - Billing and collection The Stormwater Management and Fee shall be administered and collected in the same manner as the City's sewer utility. 52.14-52.15 - Reserved CHAPTER 52. STORMWATER, FLOOD MANAGEMENT UTILITY -6- BEAVER WATERSHED;►ALLIANCG Becky Roark Executive Director, Beaver Watershed Alliance PO Box 762 Elkins, AR 72727 Becky@ beaverwatershedalliance.org 479-305-9701 April 10, 2024 City of Fayetteville Council Members 113 West Mountain St. Fayetteville, AR 72701 RE: Support for Stormwater Utility Dear City of Fayetteville Council Members, I am writing to express strong support for the implementation of a stormwater utility in Fayetteville and its positive impact on the Beaver Lake watershed. Beaver Watershed Alliance is a 501c3 nonprofit watershed group, formed in 2011, working to protect, enhance and sustain Beaver Lake and the integrity of its watershed. We work closely with the City of Fayetteville and residents to engage the public in conservation stewardship, work alongside city staff to install green infrastructure and have celebrated many success stories in water quality achievements over the past decade. However, with the growth outpacing the resources for water quality protection and restoration needs, we believe that this initiative is crucial for the future of water quality in the Town Branch watershed and West Fork watershed, which are major tributaries to Beaver Lake, and an additional safeguard to keep high -quality drinking water rates low for residents. Increased urbanization and land development have led to a rise in stormwater runoff, which poses significant threats to water quality and ecosystem health. Pollution from sediment, nutrients, and contaminants can degrade water quality, harm aquatic life, and jeopardize public health. Sediments are costly to the drinking water utilities to remove and dispose. By implementing a stormwater utility, Fayetteville can take proactive measures to mitigate the adverse effects of stormwater runoff and protect the integrity of the Beaver Lake watershed. The revenue generated from a stormwater utility fee could be invested in critical infrastructure projects, including green infrastructure, detention pond management, and erosion control measures, which help to reduce runoff volume and pollutant loads. Additionally, funding can support educational programs and outreach efforts to raise awareness about the importance of watershed stewardship and encourage sustainable practices among residents and businesses. We urge you, as members of the City of Fayetteville Council, to consider the positive outcomes from the implementation of a stormwater utility as a critical step towards safeguarding the Beaver Lake watershed and ensuring a sustainable future for generations to come. Your leadership and commitment to environmental stewardship will not only benefit our community and watersheds today but leave a legacy of conservation and responsible resource management in our region. Thank you for your attention to this matter, and we look forward to seeing the City of Fayetteville continue as a leader in stormwater management and water quality protection. Sincerely, Becky ark Executive Director Beaver Watershed Alliance becky@beaverwatershedalliance.org The Source is a quarterly ptiblication of Beaver Water District STORMWATER UTILITY MAKES SENSE By Dr. James A. McCarty, Environmental Quality Manager In March of 2006, the first agree- ment was signed between the City of Fayetteville and Beaver Water District (BWD) for the protection of Beaver Lake. This particular agreement Centered around potential Changes t0 the dis- charge permit forthe Noland Wastewater Plant and focused On efforts both the City and BWD would do t0 help reduce nonpoint source nutrients from entering our drinking water supply. That first agreement started what is now a long history of Cooperation to protect Beaver Lake and includes two additional agree ments. Several of our more notable successes stemming from our coopera- tion include the Continued efforts by the Noland Wastewater Plant to keep phosphorus Concentrations in their effluent well below permitted values, multiple stream -restoration projects along the West Fork and White River with matching Contributions from BWD and the City, Cooperation on low impact development projects, and most recently, the joint purchase of 225 acres of flood - plain property along the West Fork White River in southeast Fayetteville In 2018, the City let BWD know that they would be pursuing a study t0 look at the feasibility of forming a Stormwater Utility. The entire Concept was unfamiliar to most people at the time, but the bas►Cs Of the idea made sense, storm. - water infrastructure and maintenance is underfunded, and with a backlog of projects Contributing to flooding issues and water quality threats t0 Beaver Lake, a stormwater utility could help mitigate those issues. As the study unfolded Over the next Couple of years and a framework for how a stormwater utility Could Operate was defined, it became Clear that this type of structure could significantly improve water quality. The landowners within the City each have a certain amount Of impervious Cover on their property which does not allow rainfall to soak in, leading to runoff. The runoff has to be accounted for within the City's stormwater infrastructure, to ensure that it flows properly and reduces flood- ing risk. This infrastructure is not just the traditional Concrete infrastructure for stormwater management, hundreds of miles of pipe/drainage ways under- neath the City that carry stormwater Off streets to local streams, it is also the City required stormwater detention, retention, and low impact development features in developments. The City would Charge Customers a rate based on the total impervious area of their land. This makes sense as the more impervious area one has, the higher the Cost to the City to deal with the stormwa- ter runoff from the property While most of the proposed funding would be slated for maintenance of existing infrastructure and addressing flooding issues after heavy rain, much of the activity would have a positive impact on water quality. When properly Summer 2024 functioning and maintained, concrete infrastructure, water retention/deten- tion ponds, and low impact develop- ment features can all be effective at reducing high flow during storm events and thus, reducing transport of sedi- ments, nutrients, and Chemicals to our drinking water supply. This summer, the Fayetteville City Council elected to Con- tinue funding updates to the original study and the development Of an ordi- nance for the Stormwater Utility. tt has been almost six years since BWD was first made aware of these efforts, and at times it has been a slow process, but now it feels like there is finally light at the end of the tunnel. Beaver Water District Continues to support the efforts Of the City of Fayetteville to protect Beaver Lake, and the District hopes that the example set by the new Stormwater Utility and other water quality efforts is followed by others We have a strong history of collaboration and water quality protection t0 draw from and are looking forward to what Comes next. I LLI I��Du,� n WATERSHED PARTNERSHIP May 7, 2024 Dear Fayetteville City Council, I am writing to express support of the Illinois River Watershed Partnership (IRWP) for the implementation of the stormwater utility fee as proposed by the city to support stormwater infrastructure maintenance, operations, water quality monitoring, and other stormwater infrastructure investment needs. Our region's water quality is increasingly impacted by land cover and land use changes, increasing precipitation, and inadequate stormwater management functionality. Addressing stormwater volume and quality has become increasingly crucial not only for our communities and the region's economy but also for our neighbors downstream. City staff have dedicated many hours to researching the proposed stormwater utility fee, including consulting with IRWP and other partners, that aims to raise necessary funds dedicated to stormwater management, a vital tool for addressing stormwater impacts. Most of the City of Fayetteville's stormwater infrastructure is designed to manage floods. However, this stormwater utility will enable the city to maintain existing stormwater infrastructure, retrofit detention ponds, upgrade surface materials, stabilize streambanks, enhance riparian areas, and add vegetated strips and ditches, bioswales, and other proven best management practices. These types of investments are effective at managing stormwater by simultaneously protecting water quality and downstream property owners located throughout the City and on Clear Creek, Goose Creek, and other tributaries that convey stormwater away from Fayetteville. By developing a sustainable source of funds to invest in stormwater infrastructure, the city is also committing to progress toward meeting the Environmental Protection Agency (EPA) water quality standards, addressing flooding risks caused to downstream property owners and communities. The City of Fayetteville added 464 acres of impervious area within city limits between 2018 and 2022. With these rates of growth, a modest 1-inch storm is resulting in approximately 5.6 million gallons of additional stormwater runoff in Fayetteville (Table 1). Table 1: Gallons of Runoff in 1-inch Rain in Natural vs. Urbanized Land Cover Evapotranspiration Infiltration Runoff Natural Ground Cover 40% (5,039,782.4) 50% (6,299,728) 10% (1,259,945.60) Impervious Land Cover (75%-100%) 30% (3,779,836.8) 15% (1,889,918.4) 55% (6,929,700.8) -1,259,945.60 gallons-4,409,809.60 gallons +5,669,755.20 gallons Note: 1 inch rain, 1 acre = 27,154 gallons, 464 acres x 27,154 gallons, 12,599,456 gallons of water. PO Box 205, Cave Springs, AR 72718 www.irwp.org By funding stormwater practices that improve evapotranspiration, infiltration, and reduce runoff, downstream flooding can be significantly reduced and water quality can be improved. Reductions in nutrients and pollutants can be achieved through the implementation of various green infrastructure BMPs. A summary of estimated reductions are below. Table 2: Summary of Nutrient and Pollutant Reductions by BMP' Nutrient Reductions: Pollutant Reductions: Nitrogen (N): Sediment: Green roofs: 50-60% Vegetated filter strips: 37-95% Bioretention cells: 40-70% Permeable pavement: 60-90% Vegetated swales: 20-70% Heavy Metals (e.g., copper, lead, Phosphorus (P): zinc): Green roofs: 50-60% Bioretention cells: 50-80% Bioretention cells: 40-70% Infiltration trenches: 50-90% Vegetated filter strips: 30-90% E. coli Wetland basin 64-86% These estimates can vary depending on factors such as design, climate, soil conditions, and maintenance practices. However, green infrastructure BMPs consistently demonstrate significant reductions in nutrients and pollutants compared to traditional stormwater management techniques, making them valuable tools for improving water quality in urban areas. We commend the city for thoroughly considering the equity in development of this fee. Currently, it is evident that the burden of stormwater falls disproportionately on lower -income residents who may lack the means to address stormwater issues on their properties. By establishing a stormwater utility fee, we can ensure that the costs are shared more fairly among all residents, thus promoting equity within our community. Furthermore, we commend the efforts to implement a modest annual increase to the fee. This approach provides stability while allowing for adjustments to keep pace with evolving needs and inflation. I also want to emphasize the potential for partnerships in addressing stormwater management with the many robust conservation organizations servicing Fayetteville. Since a credit system for reduction of impervious surface area is outlined, there are ways IRWP, the city, and others can work together to decrease runoff, educate citizens, and achieve other benefits like ecosystem services, cultural heritage perpetuation, add social infrastructure, and increase biodiversity and resilience in the urban landscape. By involving property owners and developers, we can collectively work towards reducing impervious surface areas where unnecessary and implement green infrastructure solutions that enhance community benefits, reduce heat island effects, and improve surface and groundwater quality. Initiatives such as loan programs for low or no -interest stormwater funds can incentivize developers to incorporate low -impact practices into their projects, reducing maintenance costs and benefiting both the environment and the community. Homeowners can take advantage of educational opportunities 'Sources: International Stormwater BMP Database: 2020 Summary Statistics; Minnesota Stormwater Manual, Median pollutant removal percentages for several BMPs; Barnstable/Yarmouth, United States Environmental Protection Agency (EPA), Nitrogen -reducing Green Infrastructure in Environmental Justice Communities; Abimbola, 0. et al, (2021), Modeling and Prioritizing Interventions Using Pollution Hotspots for Reducing Nutrients, Atrazine and E. coli Concentrations in a Watershed; and other sources. PO Box 205, Cave Springs, AR 72718 www.irwp.org and cost -share programs through IRWP and other partners to install practices that qualify for credit. Program opportunities, for example, like through a partnership with the Arkansas Department of Agriculture - Natural Resources Division utilizing Clean Water State Revolving Funds. In conclusion, I urge the Fayetteville City Council to move forward with the implementation of a stormwater utility fee. As with Hot Springs, it will take a few years to implement and begin realizing the benefits to residents. However, there are many deferred stormwater projects that need to be addressed before the next rainfall. By taking proactive steps now, the city can better protect our community, enhance quality of life, and sustainably manage stormwater for the benefit of all. Thank you for considering our perspective on this important matter. Sincerely, /LifKindberg Executive Director Illinois River Watershed Partnership (IRWP) Ph. 479.422.5676 leif@irwp.org PO Box 205, Cave Springs, AR 72718 www.irwp.org 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 143-24 File Number: 2024-1836 INTENT TO ENACT STORMWATER UTILITY FEE (RESOLUTION OF INTENT): A RESOLUTION OF INTENT TO ENACT A STORMWATER UTILITY ORDINANCE AND ESTABLISH A STORMWATER MANAGEMENT AND WATER QUALITY FUND, AUTHORIZE ADDITIONAL SERVICES RELATED TO IMPLEMENTATION AND PUBLIC OUTREACH, AND TO APPROVE A BUDGET ADJUSTMENT WHEREAS, the Engineering Division, the City Council Stormwater Committee, and the City Council Water & Sewer Committee have studied our community's growing need to improve our stormwater management services; and WHEREAS, with the help of a professional consultant with extensive experience in creating Stormwater Utilities supported by appropriate and fair utility fees, these City Council committees and Engineering staff have devised the fairest Stormwater Management Utility Fee possible and recommend this ordinance to the full City Council for passage; and WHEREAS, the City Council has determined that the Stormwater Utility Fee is necessary to equitably and efficiently fund stormwater management services in order to provide for the safety, preserve the health, and promote the prosperity of Fayetteville residents, businesses, and institutions; and WHEREAS, the City Council also agrees with and adopts all the purposes explained in § 52.01 —Purpose of the proposed new code section; and WHEREAS, additional services authorized with this resolution of intent include development of the billing database and billing tool that would allow property owners and residents to view their proposed fee as a portion of the continued public outreach efforts, which could include engaging a consultant or additional temporary staff. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby expresses its intent to enact Chapter 52 Stormwater Management Utility Fee as shown in Exhibit A attached hereto and made a part hereof. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment, a copy of which is attached to this Resolution, to appropriate funds for additional services including development of the billing database and a billing tool to allow property owners and residents to view their proposed fees. Page 1 Resolution: 143-24 File Number: 2024-1836 PASSED and APPROVED on May 21, 2024 Page 2 Attest: g�RK1/'TRE�9 Y 'G FAY ETTEVILLE Kara Paxton City rk Treasurer •' • O �. ' '/yl TO `` . CITY OF FAYETTEVILLE r4W ARKANSAS MEETING OF MAY 21, 2024 CITY COUNCIL MEMO 2024-1836 TO: Mayor Jordan and City Council THRU: Chris Brown, Public Works Director FROM: Alan Pugh, Staff Engineer SUBJECT: Approval of a resolution of intent to adopt Chapter 52, Stormwater Management and Water Quality Utility, of the City of Fayetteville Code or Ordinances establishing a Stormwater Management and Water Quality Fund, authorization to perform additional services and approval of a budget adjustment RECOMMENDATION: Staff recommends approval of a resolution of intent to adopt Chapter 52, Stormwater Management and Water Quality Utility, of the City of Fayetteville Code or Ordinances establishing a Stormwater Management and Water Quality Fund, authorization to perform additional services and approval of a budget adjustment. BACKGROUND: Like many cities throughout the state and nation, the City of Fayetteville experiences issues with management of its stormwater utility system. These issues stem from many sources including, but not limited to, compliance with the mandated Municipal Separate Stormwater System (MS4) requirements, aging infrastructure, maintenance of system capacity, personnel to perform systematic inspections and the lack of formal drainage systems in many older areas of the City. To address these concerns, the City has historically funded the stormwater program through the Sales Tax Capital Improvement Program (CIP) and the Street Fund for capital and operational/maintenance functions, respectively. However, there are many needs within the City that require funding from these sources and, at least in recent years, the funding for stormwater has been inadequate to comprehensively address stormwater management within the City. To develop a comprehensive solution, additional funding is required for personnel and equipment as well as multiple capital projects, many of which will require more than $1 million dollars for each project. Given the current levels, it would take many years to address just one of those projects. In June, 2018, the City Council recognized these needs and approved with a consultant contract for a feasibility study (Resolution 131-18) and amended that agreement on two occasions (Resolutions 209-19 and 250-19) to provide additional investigation and details. That study was completed in August of 2019 and updated in 2022 with more recent program costs, impervious area and associated fees. The Council also passed a resolution of intent to establish a stormwater utility in July of 2022 (Resolution 157-22) DISCUSSION: The study recognized several areas that are currently underfunded, with the gap between the funding and actual costs to provide the services increasing every year. These needs include categories such as: Operation and Maintenance Engineering and Planning Mailing address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 Regulatory Compliance Capital Improvement Projects The costs associated with these categories were based on a level and extent of service agreed upon by council early in the program discussions as well as estimates of future regulatory compliance costs and expansion of the stormwater system as Fayetteville continues to grow. The costs associated with the recommended stormwater utility program can be found below. Program Costs Current Budget Additional Needs Total Program Operation and Maintenance $998,441 $1,508,000 $2,506,441 Engineering and Planning $67,000 $122,000 $189,000 Regulatory Compliance $193,000 $274,000 $467,000 Stormwater CIP $200,000 $913,400 $1,113,400 Administrative $0 $324,000 $324,000 Total $1,458,441 $3,141,400 $4,599,841 In response to the completed study and the need to find a sustainable funding source for the stormwater management program, City staff has drafted Chapter 52, Stormwater Management and Water Quality Utility, for consideration by City Council. The proposed ordinance would establish an equitable funding source based on impervious areas, which can be directly correlated to the impact of any given property to the stormwater system. The fee is proposed to be billed to sewer users with the City limits in a tiered system. Properties with greater impervious areas would have a higher fee than smaller properties due to the increased impact to the system. If there are multiple sewer customers on a single property, the total impervious area would be allocated between those customers and the appropriate portion of the total fee billed to each customer. Staff have worked closely with the City Attorney's office throughout the process and has modified the program to address the concerns that have been raised. The City Attorney has expressed concern over the legality of billing federal, state and county governments, and recommended that they be exempted. Staff has included a revised monthly fee that reflects this recommendation. The monthly fee is estimated to go to $1.35 per billing unit with those exemptions, which is a slight increase from the $1.30 per billing unit discussed previously. That change is reflected in the table below and in the attached draft of Chapter 52. The proposed fee would provide funding, in addition to that already being allocated from existing sources, to operate and maintain as well as improve and expand the stormwater system. The fee tiers are as shown below. Tier Range (by square footage Billing Units Initial Monthly Fee of impervious area on a $1.35 per unit) Tier property) 1 1052,000 11.25 I $1.69 Mailing address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 2 >2,000 to <_ 3,500 2.75 $3.71 3 >3,500 to <_ 5,000 4.25 $5.73 4 >5,000 to <_ 6,500 5.75 $7.76 5 >6,500 to <_ 8,000 7.25 $9.79 6 >8,000 Per Calc Billing Unit x Rate This fee will close the existing funding gap and will fully fund a program to adequately manage stormwater within the City of Fayetteville. The proposed program presents a sustainable and equitable method of funding. The additional services authorized with this proposal would include development of the billing database and billing tool that would allow property owners and residents to view their proposed fee as a portion of the continued public outreach efforts. This could include engaging a consultant and/or additional temporary staff. If a consultant is engaged, the contract for the services will be brought back to the council. However, council would be authorizing and to authorize the addition of up to 3.0 temporary full- time equivalent positions for the GIS and utility financial services to backfill existing employees related with the implementation of a Stormwater Utility with this resolution. This would bring the City one step closer to implementing the program. The anticipated schedule moving forward would be for the billing tool to be available to the public by October of this year and for the council to consider the ordinance adopting the program prior to the end of the year with the goal of the fee being included on sanitary sewer bills by August of 2025. Additional funding is anticipated to be necessary at the time of adoption of Chapter 52 for aerial imagery and impervious data in order to establish the baseline of impervious area for the program. BUDGET/STAFF IMPACT: The proposal would initially generate approximately $3 million in additional funding to be allocated to the Stormwater Management and Water Quality program. ATTACHMENTS: SRF (#3), BA (#4), Exhibit A - Stormwater Management and Water Quality - Final Draft (#5), 2024-4 Letter of Support_Stormwater Utility_BWA (#6) Mailing address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72701 (479)575-8323 Legislation Text File #: 2024-1836 Approval of a resolution of intent to adopt Chapter 52, Stormwater Management and Water Quality Utility, of the City of Fayetteville Code or Ordinances establishing a Stormwater Management and Water Quality Fund, authorization to perform additional services and approval of a budget adjustment A RESOLUTION OF INTENT TO ENACT A STORMWATER UTILITY ORDINANCE AND ESTABLISH A STORMWATER MANAGEMENT AND WATER QUALITY FUND, AUTHORIZE ADDITIONAL SERVICES RELATED TO IMPLEMENTATION AND PUBLIC OUTREACH, AND TO APPROVE A BUDGET ADJUSTMENT WHEREAS, the Engineering Division, the City Council Stormwater Committee, and the City Council Water & Sewer Committee have studied our community's growing need to improve our stormwater management services; and WHEREAS, with the help of a professional consultant with extensive experience in creating Stormwater Utilities supported by appropriate and fair utility fees, these City Council committees and Engineering staff have devised the fairest Stormwater Management Utility Fee possible and recommend this ordinance to the full City Council for passage; and WHEREAS, the City Council has determined that the Stormwater Utility Fee is necessary to equitably and efficiently fund stormwater management services in order to provide for the safety, preserve the health, and promote the prosperity of Fayetteville residents, businesses, and institutions; and WHEREAS, the City Council also agrees with and adopts all the purposes explained in § 52.01 — Purpose of the proposed new code section; and WHEREAS, additional services authorized with this resolution of intent include development of the billing database and billing tool that would allow property owners and residents to view their proposed fee as a portion of the continued public outreach efforts, which could include engaging a consultant or additional temporary staff. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby expresses its intent to enact Chapter 52 Stormwater Management Utility Fee as shown in Exhibit A attached hereto and made a part hereof. Page 1 Resolution: 143-24 File Number. 2024-1836 Section 2: That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment, a copy of which is attached to this Resolution, to appropriate funds for additional services including development of the billing database and a billing tool to allow property owners and residents to view their proposed fees. Page 2 City of Fayetteville Staff Review Form 2024-1836 Item ID 5/21/2024 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item Chris Brown 5/2/2024 ENGINEERING (621) Submitted By Submitted Date Division / Department Action Recommendation: Approval of a resolution of intent to adopt Chapter 52, Stormwater Management and Water Quality Utility, of the City of Fayetteville Code or Ordinances establishing a Stormwater Management and Water Quality Fund, authorization to perform additional services and approval of a budget adjustment 1010.090.6600-5314.00 Account Number 17008.1 Project Number Budgeted Item? Yes Does item have a direct cost? No Is a Budget Adjustment attached? Yes Budget Impact: General Fund Fund Stormwater Feasability Study Project Title Total Amended Budget Expenses (Actual+Encum) Available Budget Item Cost Budget Adjustment Remaining Budget $ 52,685.00 $ 52,684.64 0.36 $ 150,000.00 $ 150,000.36 V20221130 131-18, 209-19, Purchase Order Number: Previous Ordinance or Resolution # 250-19, 157-22 Change Order Number: Original Contract Number: Comments: Approval Date: City of Fayetteville, Arkansas - Budget Adjustment (Agenda) Budget Year Division Adjustment Number ENGINEERING (621) /Org2 2024 Requestor: Chris Brown BUDGET ADJUSTMENT DESCRIPTION / JUSTIFICATION: Approval of a resolution of intent to adopt of Chapter 52, Stormwater Management and Water Quality Utility, of the City of Fayetteville Code or Ordinances establishing a Stormwater Management and Water Quality Fund, authorization to perform additional services and approval of a budget adjustment COUNCIL DATE: 5/21/2024 ITEM ID#: 2024-1836 Nolly Black 51312024 77:77 RIn RESOLUTION/ORDINANCE Budget Division Date TYPE: D - (City Council) JOURNAL #: GLDATE: CHKD/POSTED: TOTAL Account Number 150,000 150,000 Increase / (Decrease) Expense Revenue Project.Sub# Project Sub.Detl AT v.2024422 Account Name 1010.090.6600-5314.00 150,000 - 17008 1 EX Professional Services 1010.001.0001-4999.99 - 150,000 RE Use Fund Balance - Current I of 1 EXH I BIT A CHAPTER 52: STORMWATER MANAGEMENT UTILITY FEE ARTICLE I — GENERAL PROVISIONS 52.01 - Purpose The Stormwater Management Utility Fee is hereby established to create an equitable, efficient, and dedicated funding source for stormwater management services in the City of Fayetteville and provide for the safety, preserve the health and promote the prosperity of Fayetteville residents, businesses and institutions. The purposes for the Stormwater Management Fee further include: (A) To establish an equitable, fair, efficient and dedicated funding source for stormwater management services in the City of Fayetteville, Arkansas in addition to other taxpayer funds so that better long- range planning can be achieved. (B) To lessen or deter hazards to persons, property and the environment caused by increased runoff, obstructions to drainage and introduction of excessive silts, debris and pollutants into the drainage system, lakes, ponds, streams, rivers and other water bodies in the City of Fayetteville, and to otherwise promote the public health, safety and welfare of the public. (C) To fund the City's MS4 Stormwater Management Program for which it is expected to require a series of minimum control measures and report on their progress annually. In addition to new measures with each 5-year permit renewal, the City is projected to meet the population threshold of 100,000 by no later than 2030 and would be designated a medium MS4 community, triggering additional mandated activities. (D) To administer the National Flood Insurance Program and its Community Rating System which provides property owners with credits to reduce their flood insurance premiums, (E) To equitably and legally address drainage needs, also known as stormwater management, to protect public health, safety, and welfare and to reduce flooding on city streets thereby ensuring access of emergency vehicles to all properties within the City during flood events, by providing resources for construction, maintenance, and operation of stormwater facilities. (F) To implement additional watershed improvements of the City's waters in general, and specifically, that of Beaver Lake, the City's drinking water source, and the Illinois River. 52.02 - Definitions The following definitions shall apply to this chapter: Billing Unit shall mean the unit by which stormwater utility bills are calculated. A single billing unit shall be equal to 1,000 square feet of impervious area. Customer shall mean all persons or entities to whom the Stormwater Management Utility Fee is properly billed. A customer is further defined as a person or an entity billed for sanitary sewer services within the City limits. Credit shall mean a conditional, renewable reduction in the amount of the fee owed by a customer in accordance with the Sustainable Credit Framework. CHAPTER 52. STORMWATER, FLOOD MANAGEMENT UTILITY EXH I BIT A Public customer shall mean a local public agency including property of a school district within the City of Fayetteville. Public Stormwater System shall mean all stormwater conveyance systems located within the City of Fayetteville right-of-way or public drainage easements. All other stormwater conveyance systems shall be considered Private Stormwater Systems. Stormwater Management Utility Fee is the utility fee authorized by state law to provide necessary funds for a city to adequately address stormwater problems and needs through an equitable and fair utility fee derived from an expert analysis of the amount of impervious surface of each property which causes increased stormwater runoff that needs to be managed by the city to reduce or prevent flooding problems for our citizens and businesses. 52.03 - Applicability (A) The stormwater utility fee shall apply to all real property within the territorial jurisdiction of the City of Fayetteville for which sanitary sewer is provided by the City and upon which the City may constitutionally and legally assess such stormwater utility fee. (B) City -owned real property constituting the municipal drainage system, including public streets, public rights -of -way, drainage facilities, and related infrastructure is not served by a sanitary sewer and thus is not subject to a stormwater utility fee. (C) The requirements of this chapter do not relieve landowners, developers, other individuals, and entities from their responsibility for complying with the obligations of other portions of the Unified Development Code. 52.04-52.05 - Reserved ARTICLE II — STORMWATER MANAGEMENT UTILITY FUND 52.06 - Establishment of a Stormwater Management Utility Fund Pursuant to A.C.A. § 14-235-201 and other state law, the City of Fayetteville hereby creates a fund entitled the "Stormwater Management Utility Fund" for the purpose of segregating, identifying, and controlling revenues and expenses for operation of the City of Fayetteville Stormwater Management Program and other storm -related equipment, construction, materials, supplies or services attributable to these functions. The following revenue sources shall be deposited in said fund: (A) All revenue collected by or on behalf of the Stormwater Management Utility Fee. (B) Revenue from contributions in -lieu of onsite detention or from developers as contributions for required off -site drainage improvements, which may include bridge assessments. (C) Any interest earned on monies held in the Stormwater Management Utility Fund. (D) Any other revenue as may be determined appropriate by the City Council, including but not limited to general revenue, bond and grant proceeds. These revenues shall be used exclusively for the purposes listed in Article I — General Provisions. CHAPTER 52. STORMWATER, FLOOD MANAGEMENT UTILITY -2- EXH I BIT A 52.07 — Authorization of a Stormwater Management Utility Fee The Stormwater Management Utility Fee is a utility fee that is hereby authorized to be charged on most real property within the City of Fayetteville, Arkansas. The fee shall be billable to the City's Sewer Utility customers. The rate structure for the utility fee shall: (A) Be based on the square footage of impervious area on a property, (B) Be owner / customer type (residential, commercial, etc..) -neutral, (C) Use a billing unit of 1,000 square feet of impervious area, (D) Slot property within the following six -tier billing unit structure: Tier Tier Range (by square footage of impervious area on a property) Billing Units Initial Monthly Fee (Billing Unit times Billing Rate) 1 Less than 2,000 1.25 $1.69 2 2,001 to 3,500 2.75 $3.71 3 3,501 to 5,000 4.25 $5.73 4 5,001 to 6,500 5.75 $7.76 5 6,501 to 8,000 7.25 $9.79 6 More than 8,000 See (F) See (F) (E) For Tiers 1 through 5, the billing unit in the chart shall be multiplied by the billing rate per unit rounded down to the nearest cent. (F) For Tier 6, properties with impervious area greater than 8,000 square feet, the actual impervious area is divided by 1,000 and multiplied by the monthly rate per billing unit. (G) The initial rate per billing unit shall be $1.35. This rate shall be increased by 3% per year beginning in the January 2026 billing period. No rates shall increase after 2031 without a further rate study. (H) Fees for sewer customers on properties with multiple sewer accounts shall be based on the individual sewer customer's percentage of total impervious area of the property or properties that may be attributed to the customer's account, included any areas of parking, common use areas, or other impervious area on the attributable properties. (1) Sewer customers or property owners may apply to have the fee for their property mitigated or reduced by the Sustainable Credit Framework. 52.08 — Initial Charge for the Stormwater Management Utility Fee The initial assessment of the Stormwater Management Utility Fee established shall be charged beginning one year after the effective date of the ordinance. 52.09 — Level and Extent of Service Policies The level of services funded by the Stormwater Management Utility Fees are dependent upon the amount of revenue generated by this Utility Fee, as well as possible general fund, sales tax bond, grants and other sources. These revenues shall fund the operation and maintenance, engineering and planning, regulatory compliance, stormwater capital improvements and administration of the City of Fayetteville's MS4 Program. The most recently adopted version of the City of Fayetteville Drainage Criteria Manual and Green Stormwater Practices will serve as the basis for the extent of stormwater service related to: (A) Public roads, public rights of way and public detention ponds(detention pond maintenance limited to activities necessary for proper functionality), CHAPTER 52. STORMWATER, FLOOD MANAGEMENT UTILITY -3- EXH I BIT A (B) Drainage features within existing dedicated public easements (excluding private commercial detention ponds). (C) These services extend to the downstream end of the first private infrastructure connected to the City of Fayetteville's drainage system. (D) Prior to City accepting responsibility for any private stormwater system, its owner must dedicate a drainage easement to the City of sufficient size as determined by the City to allow access to and work on the drainage facilities with appropriate equipment. The City Engineer shall determine the sufficiency of the width and extent of easements. 52.10 - Reserved ARTICLE III -ADMINISTRATION 52.11- Administration and Appeals (A) The City Engineer is responsible for the interpretation and administration of this chapter. (B) Owners may appeal the initial amount of the Stormwater Management Utility Fee credit allowed denial of exemption or other dispute to the City Engineer, who shall determine the validity of any such appeal. The City Engineer shall set forth the requirements of any such appeal in the Drainage Criteria Manual. The City Engineer shall report the amount of any requested credit to be allowed in writing to the appellant and maintain such record by the Engineering Department for at least one year. (C) After exhausting administrative means with the City Engineer, customers desiring to further appeal of an impervious area estimate, fee or credit can be heard by The City Water and Sewer Committee pursuant to Chapter 155: Appeals." 52.12 —Sustainable Credit Framework (A) A Sustainable Credit Framework will be established by the City Council that provides all Stormwater Management Utility customers with an opportunity to reduce their normal fees. Customers may qualify for renewable fee reductions by demonstrating activities or stormwater practices that increase the water quality and thereby reduce the water quality and quantity burden imposed on the City of Fayetteville's drainage system. Activities eligible for credit include the following: (1) Compliance with an industrial stormwater permit (2) Public customers that establish contracts, or Interlocal Cooperation Agreements, with the City under § 25-20-104 will receive a credit recognizing the value of their public efforts to reduce stormwater runoff, in accordance with the terms of the interlocal agreement. (3) Using shared parking lots to minimize the creation of new impervious area (4) Property retrofits using Water Quality, Flood, and Tree Mitigation Measures from the Drainage Criteria Manual. (5) Attendance at approved Stormwater Education Program and Stormwater Stewardship Activities. (6) Demonstration of no direct discharge of stormwater. CHAPTER 52. STORMWATER, FLOOD MANAGEMENT UTILITY QB EXH I BIT A (B) The final Sustainable Credit Framework, including appropriate application forms and instructions, will be developed and available to customers a minimum of 6 months in advance of the effective date of the initial collection of the Stormwater Management Utility Fee. 52.13 - Billing and collection The Stormwater Management and Fee shall be administered and collected in the same manner as the City's sewer utility. 52.14-52.15 - Reserved CHAPTER 52. STORMWATER, FLOOD MANAGEMENT UTILITY I&I Received By: Alan Pugh 05/14/2024 3:05 P.M. BEAVER WATERSiHED�ALLIANCE Becky Roark Executive Director, Beaver Watershed Alliance PO Box 762 Elkins, AR 72727 Becky@ beaverwatershedalliance.org 479-305-9701 April 10, 2024 City of Fayetteville Council Members 113 West Mountain St. Fayetteville, AR 72701 RE: Support for Stormwater Utility Dear City of Fayetteville Council Members, I am writing to express strong support for the implementation of a stormwater utility in Fayetteville and its positive impact on the Beaver Lake watershed. Beaver Watershed Alliance is a 501c3 nonprofit watershed group, formed in 2011, working to protect, enhance and sustain Beaver Lake and the integrity of its watershed. We work closely with the City of Fayetteville and residents to engage the public in conservation stewardship, work alongside city staff to install green infrastructure and have celebrated many success stories in water quality achievements over the past decade. However, with the growth outpacing the resources for water quality protection and restoration needs, we believe that this initiative is crucial for the future of water quality in the Town Branch watershed and West Fork watershed, which are major tributaries to Beaver Lake, and an additional safeguard to keep high -quality drinking water rates low for residents. Increased urbanization and land development have led to a rise in stormwater runoff, which poses significant threats to water quality and ecosystem health. Pollution from sediment, nutrients, and contaminants can degrade water quality, harm aquatic life, and jeopardize public health. Sediments are costly to the drinking water utilities to remove and dispose. By implementing a stormwater utility, Fayetteville can take proactive measures to mitigate the adverse effects of stormwater runoff and protect the integrity of the Beaver Lake watershed. The revenue generated from a stormwater utility fee could be invested in critical infrastructure projects, including green infrastructure, detention pond management, and erosion control measures, which help to reduce runoff volume and pollutant loads. Additionally, funding can support educational programs and outreach efforts to raise awareness about the importance of watershed stewardship and encourage sustainable practices among residents and businesses. We urge you, as members of the City of Fayetteville Council, to consider the positive outcomes from the implementation of a stormwater utility as a critical step towards safeguarding the Beaver Lake watershed and ensuring a sustainable future for generations to come. Your leadership and commitment to environmental stewardship will not only benefit our community and watersheds today but leave a legacy of conservation and responsible resource management in our region. Thank you for your attention to this matter, and we look forward to seeing the City of Fayetteville continue as a leader in stormwater management and water quality protection. Sincerely, Becky ark Executive Director Beaver Watershed Alliance becky@beaverwatershedalliance.org Received from Courtney Spohn on 11/27/2024 at 12:43 pm on behalf of the Fayetteville Youth Advisory Council Good evening Mayor and City Council, my name is Mia Alansari and I live in Ward 3 and I am the Environmental Action and Sustainability Chair for the Fayetteville Youth Advisory Council. If you have lived in Fayetteville, you have seen how it floods. These floods create runoff that carry pollutants that affect our drinking water. It affects the water we drink so it affects us all. On April 23rd, I had a meeting with Leif Olson and Chris McNamara, two members of the sustainability department for the City of Fayetteville. Our meeting was to discuss and for me to become familiar with the environmental needs of Fayetteville as the inaugural Environmental Action and Sustainability Chair for the Fayetteville Youth Advisory Council. They brought the stormwater management plan to my attention. After that meeting, I felt it was important to share this with my fellow youth council members. On April 25th, we had our monthly Youth Advisory Council Meeting. I presented a presentation on the information discussed at my earlier meeting. At the meeting, the Fayetteville Youth Advisory Council made a unanimous vote for a motion to recommend that the City Council support and vote in favor of the Stormwater Management Utility Plan. I understand that on May 21 st, The City Council approved a resolution of intent for this plan. The Fayetteville Youth Advisory Council encourages The City Council to vote in favor of this plan. As representatives of the youth of Fayetteville, we believe your decision affects our future and the residents of Fayetteville's quality of life. We hope this plan can pave the way for areas around us. Thank you on the behalf of the Fayetteville Youth Advisory Council for your time and have a good evening. Received From: Stacy Barnes: 12/04/: 41 DEPARTMENTAL CORRESPONDENCE OFFICE OF THE CITY ATTORNEY TO: Lioneld Jordan, Mayor City Council Kit Williams City Attorney Blake Pennington Senior Assistant City Attorney Hannah Hungate Assistant City Attorney CC: Susan Norton, Chief of Staff Stacy Barnes Chris Brown, Public Works Director Paralegal Alan Pugh, Stormwater Engineer FROM: Kit Williams, City Attorney DATE: December 4, 2024 RE: Slight change (increase of six cents for Tier 1 houses) The table of fees in § 52.07 in the previous Exhibit A has been slightly updated by our Stormwater Engineer from the table that I provided you in my last memo. Attached is the corrected Exhibit A with the proper table of rates in § 52.07. This new table reflects an increase of five cents in the "initial rate per billing unit (1,000 square feet of impervious area)." The attached Exhibit A (Chapter 52, Stormwater Management Utility Fee) is now what the Administration and my office recommend for your consideration. EXHIBIT CHAPTER 52: STORMWATER MANAGEMENT UTILITY FEE ARTICLE I — GENERAL PROVISIONS 52.01 - Purpose The Stormwater Management Utility Fee is hereby established to create an equitable, efficient, and dedicated funding source for stormwater management services in the City of Fayetteville and provide for the safety, preserve the health and promote the prosperity of Fayetteville residents, businesses and institutions. The Stormwater Management Utility Fee is further needed: (A) To establish an equitable, fair, efficient and dedicated funding source for stormwater management services in the City of Fayetteville, Arkansas in addition to other taxpayer funds so that better long- range planning can be achieved. (B) To provide essential improvements and enhancements to the city's stormwater management facilities necessitated by substantially increased flooding caused by global warming and climate change as evidenced recently in North Carolina, Madrid Spain, and many other locations. (C) To lessen or deter hazards to persons, property and the environment caused by increased runoff, obstructions to drainage and introduction of excessive silts, debris and pollutants into the drainage system, lakes, ponds, streams, rivers and other water bodies in the City of Fayetteville, and to otherwise promote the public health, safety and welfare of the public. (D) To fund the City's MS4 Stormwater Management Program for which it is expected to implement a series of minimum control measures and report on their progress annually. In addition to new measures with each 5-year permit renewal, the City is projected to meet the population threshold of 100,000 by 2030 and could be designated a medium MS4 community, triggering additional mandated activities. (E) To administer the National Flood Insurance Program and its Community Rating System which provides property owners with credits to reduce their flood insurance premiums, (F) To equitably and legally address drainage needs, also known as stormwater management, to protect public health, safety, and welfare and to reduce flooding on city streets thereby ensuring access of emergency vehicles to all properties within the City during flood events, by providing resources for construction, maintenance, and operation of stormwater facilities. (G) To implement additional watershed improvements of the City's waters in general, and specifically, that of Beaver Lake, the City's drinking water source, and the Illinois River. 52.02 - Definitions The following definitions shall apply to this chapter: Billing Unit shall mean the unit by which stormwater utility bills are calculated. A single billing unit shall be equal to 1,000 square feet of impervious area. Customer shall mean all persons or entities to whom the Stormwater Management Utility Fee is properly billed. A customer is further defined as a person or an entity billed for sanitary sewer services within the City limits. CHAPTER 52. STORMWATER, FLOOD MANAGEMENT UTILITY Credit shall mean a conditional, renewable reduction in the amount of the fee owed by a customer in accordance with the Sustainable Credit Framework. Public customer shall mean a local public agency including property of a school district within the City of Fayetteville. Public Stormwater System shall mean all stormwater conveyance systems and appurtenances located within the City of Fayetteville right-of-way or public drainage easements. All other stormwater conveyance systems and appurtenances shall be considered Private Stormwater Systems. Stormwater Management Utility Fee is the fee applicable to all real property within the City of Fayetteville, Arkansas which is billable to the City's Sewer Utility customers except for agencies of the State of Arkansas, Federal Government, and Washington County owned structures. Tax-exempt customer shall mean those private organizations that qualify for property tax exemptions under the Arkansas Constitution, Article 16, § 5, based on actual use. Examples include churches, cemeteries as well as property used exclusively for public charity. 52.03 - Applicability (A) This chapter shall apply to all real property within the jurisdiction of the City of Fayetteville, Arkansas for which sanitary sewer is provided upon which a city stormwater utility fee ordinance may be enforced. The Stormwater Management Utility Fee shall not be assessed against the University of Arkansas, other State Agency property, Federal Agency property, Washington County property, or the runways and taxi ways of the Fayetteville Executive Airport. (B) City -owned real property constituting the municipal drainage system, including public streets, public rights -of -way, drainage facilities, and related infrastructure is not served by a sanitary sewer and thus is not subject to a stormwater utility fee. (C) The requirements of this chapter do not relieve landowners, developers, other individuals, and entities from their responsibility for complying with the obligations of other portions of the Unified Development Code. 52.04-52.05 - Reserved ARTICLE II — STORMWATER MANAGEMENT UTILITY FUND 52.06 - Establishment of a Stormwater Management Utility Fund Pursuant to A.C.A. § 14-235-201 and other state law, the City of Fayetteville hereby creates a fund entitled the "Stormwater Management Utility Fund" for the purpose of segregating, identifying, and controlling revenues and expenses for operation of the City of Fayetteville Stormwater Management Program and other storm -related equipment, construction, materials, supplies or services attributable to these functions. The following revenue sources shall be deposited in said fund: (A) All revenue collected by or on behalf of the Stormwater Management Utility Fee. (B) Revenue from contributions in -lieu of onsite detention or from developers as contributions for required off -site drainage improvements, which may include bridge assessments. CHAPTER 52. STORMWATER, FLOOD MANAGEMENT UTILITY IVA (C) Any interest earned on monies held in the Stormwater Management Utility Fund. (D) Any other revenue as may be determined appropriate by the City Council, including but not limited to general revenue, bond and grant proceeds. These revenues shall be used exclusively for the purposes listed in Article I — General Provisions. 52.07 - Authorization of a Stormwater Management Utility Fee The Stormwater Management Utility Fee is a utility fee that is hereby authorized to be charged on most real property within the City of Fayetteville, Arkansas. The fee shall be billable to the City's Sewer Utility customers. The rate structure for the utility fee shall: (A) Be based on the square footage of impervious area on a property, (B) Be owner / customer -neutral, (C) Use a billing unit of 1,000 square feet of impervious area, (D) Slot property within the following six -tier billing unit structure: Tier Tier Range (by square footage of impervious area on a property) Billing Units Initial Monthly Fee 1 Less than 2,000 1.25 $1.69 2 2,001 to 3,500 2.75 $3.71 3 3,501 to 5,000 4.25 $5.73 4 5,001 to 6,500 5.75 $7.76 5 6,501 to 8,000 7.25 $9.79 6 More than 8,000 See (F) See (F) (E) For Tiers 1 through 5, the billing unit in the chart shall be multiplied by the billing rate per unit rounded down to the nearest cent. (F) For Tier 6, properties with impervious area greater than 8,000 square feet, the actual impervious area is divided by 1,000 and multiplied by the monthly rate per billing unit. (G) The initial rate per billing unit shall be $1.35. This rate shall be increased by 3% per year beginning in the January 2026 billing period. No rates shall increase after 2031 without a further rate study. (H) Fees for sewer customers on properties with multiple sewer accounts shall be based on the individual sewer customer's percentage of total impervious area of the property or properties that may be attributed to the customer's account, included any areas of parking, common use areas, or other impervious area on the attributable properties. (1) Sewer customers or property owners may apply to have the fee for their property mitigated or reduced by the Sustainable Credit Framework. 52.08 - Initial Charge for the Stormwater Management Utility Fee The Stormwater Management Utility Fee shall be placed for required payment and collection upon all established City utility bills on which the City may constitutionally and legally assess such Stormwater Management Utility Fee beginning with the August, 2025 utility bills provided to utility customers. The Stormwater Management Utility Fee shall continue to be collected every month thereafter with such Stormwater Management Utility Fee increasing by three percent (3%) in January 2026 and annually thereafter through 2031. Any additional increases after 2031 shall require another rate study before implementation. CHAPTER 52. STORMWATER, FLOOD MANAGEMENT UTILITY -3- 52.09 - Level and Extent of Service Policies The level of services funded by the Stormwater Management Utility Fees are dependent upon the amount of revenue generated by this Utility Fee, as well as possible general fund, sales tax bond, grants and other sources. These revenues shall fund the operation and maintenance, engineering and planning, regulatory compliance, stormwater capital improvements and administration of the City of Fayetteville's MS4 Program. The most recently adopted version of the City of Fayetteville Drainage Criteria Manual and Green Stormwater Practices will serve as the basis for the extent of stormwater service related to: (A) Public roads, public rights of way and public detention ponds, (B) Drainage features within existing dedicated public easements (excluding private commercial detention ponds). (C) These services extend to the downstream end of the first private infrastructure connected to the City of Fayetteville's drainage system. (D) Prior to City accepting responsibility for any private stormwater system, its owner must dedicate a drainage easement to the City of sufficient size as determined by the City to allow access to and work on the drainage facilities with appropriate equipment. 52.10 - Reserved ARTICLE III -ADMINISTRATION 52.11- Administration and Appeals (A) The City Engineer is responsible for the administration of this chapter. (B) A city sewer customer (an owner or tenant of any property within the City receiving sewer service from the City) which is subject to the Stormwater Management Utility Fee in August of 2025 may appeal the initial Stormwater Management Utility Fee assessed amount for their property to the City Engineer who will review the following: 1) The amount of impervious surface of the property and the proper amount of the Stormwater Management Utility Fee charged for this impervious surface. 2) The amount initially allowed for any Stormwater Management Utility Fee credit or the denial of any legal or constitutional exemption or defense to the payment of such Stormwater Management Utility Fee. 3) Any allegation or claim that the affected city sewer customer asserts that the Stormwater Management Utility Fee may not be legally or constitutionally assessed against their property. 4) Such appeal to the City Engineer shall be in writing, shall designate all of the city sewer customer's objections and claims against the amount assessed, the amount of credit allowed, any legal or constitutional arguments that this fee violates the city sewer customer's rights, and shall be signed by the city sewer customer (tenant if applicable and also by the property owner or the legal and proper agent for trusts, LLCs, corporations and other non -human entities owning the property). 5) Such appeal must be filed in the Development Services Office no later than thirty (30) calendar days after the utility bills containing the Stormwater Management Utility Fee applicable to their property were distributed to the property owner or city sewer customer in August of 2025. CHAPTER 52. STORMWATER, FLOOD MANAGEMENT UTILITY -4- 6) The City Engineer shall provide the written response and conclusions concerning all objections or claims presented by the appealing owner to the sewer customer's address currently used for utility bills by first class mail or to the owner's mailing address (if different) or by email if the owner has supplied this to City Engineer. (C) Should the appealing owner disagree or feel aggrieved by the written decision of the City Engineer, the property owner may appeal the City Engineer's decision to the Fayetteville City Council. 1) All appeals shall be submitted in writing to the Fayetteville City Clerk/Treasurer's Office within ten (10) business days from the date that the City Engineer rendered and sent the decision to the appellant. 2) All appeals shall explain why the appellant contends that the City Engineer's decision was in error. The appellant should include all of its claims, including any legal or constitutional arguments that would render the Stormwater Management Utility Fee invalid as applied to this appellant. (D) The City Engineer (and on appeal the City Council) may consider whether the property whose owner is appealing from some or all of the Stormwater Management Utility Fee requirements has: 1) Unique topography that could limit or affect the amount of benefits from the City's improving stormwater management measures; and 2) Existing and well -maintained private stormwater management facilities that do not now concentrate nor direct excessive stormwater to the potential harm of downhill neighbors or city stormwater management facilities; and 3) Proper plans to alter any existing private stormwater management facilities and agrees to promptly and fully construct such facilities to reduce or prevent excessive stormwater from harming downhill neighbors or the city stormwater management facilities. (E) If the City Engineer (and on appeal the City Council) determines that the Stormwater Management Utility Fee is fair and reasonable and bears a reasonable relationship to the benefits conferred upon the owner of this property, then the full amount of the Stormwater Management Utility Fee should be required to be paid (less any credits). If not, then the City Engineer and/or City Council shall determine the proper amount of the fee that would be fair, reasonable and bear a reasonable relationship to the benefits conferred and establish that amount as the proper Stormwater Management Utility Fee for this owner's property. 52.12 —Sustainable Credit Framework (A) A Sustainable Credit Framework will be established by the City Council that provides all Stormwater Management Utility customers with an opportunity to reduce their normal fees. Customers may qualify for renewable fee reductions by demonstrating activities or stormwater practices that increase the water quality and thereby reduce the water quality and quantity burden imposed on the City of Fayetteville's drainage system. A maximum of 75 percent credit may be achieved by one or more of the following: (1) Compliance with the City's Drainage Criteria Manual for water quality, channel protection, and flood protection. (2) Compliance with an industrial or institutional stormwater permit. (3) Public customers that establish contracts, or Interlocal Cooperation Agreements, with the City under § 25-20-104 will receive a credit recognizing the value of their public efforts to reduce stormwater runoff, in accordance with the terms of the interlocal agreement. (4) Using shared parking lots to minimize the creation of new impervious area CHAPTER 52. STORMWATER, FLOOD MANAGEMENT UTILITY -5- (5) Property retrofits using Water Quality, Flood, and Tree Mitigation Measures from the Drainage Criteria Manual. (6) Tax-exempt customers can apply for credits for approved Stormwater Education Program and Stormwater Stewardship Activities. (B) The final Sustainable Credit Framework, including appropriate application forms and instructions, will be developed and available to customers a minimum of four (4) months in advance of the effective date of the initial collection of the Stormwater Management Utility Fee. 52.13 - Billing and collection The Stormwater Management and Fee shall be administered and collected in the same manner as the City's sewer utility. 52.14-52.15 - Reserved CHAPTER 52. STORMWATER, FLOOD MANAGEMENT UTILITY -6- Received From: Stacy Barnes 12/13/24 1:25 P.M. S] DEPARTMENTAL CORRESPONDENCE OFFICE OF THE CITY ATTORNEY Kit Williams City Attorney TO: Mayor Jordan Blake Pennington City Council Senior Assistant City Attorney Kara Paxton, City Clerk Treasurer Hannah Hungate Assistant City Attorney Susan Norton, Chief of Staff Stacy Barnes CC: Chris Brown, Public Works Director Paralegal FROM: Kit Williams, City Attorney DATE: December 13, 2024 RE: Final Proposed Amendments to Exhibit A Stormwater Management Utility Fee Chapter Most of the proposed Exhibit A, Stormwater Management Utility Fee Chapter, needs no changes. However, a couple of sections did need changes to better express the wishes of the City Council or to provide an appeal process to ensure the Fee will be constitutionally assessed for all potential customers. For example, § 52.08 Initial Charge for the Stormwater Management Utility Fee was just that. There was no language clearly stating that this utility fee would then be charged monthly to all customers. Rather than relying on a valid argument that the fees should be impliedly collected monthly, it is safer to just clearly say that within this section. I also proposed a new title for this section: Collection of Stormwater Management Utility Fee. Council Member Berna proposed a definition of "Impervious surface and area" which has been added to 52.02 Definitions. This should ensure that property owners will not be assessed for the Stormwater Management Utility Fee for impervious surfaces for city trails, sidewalks, or drainage structures on city right-of-way. I have also proposed another purpose or need for this Stormwater Management Utility Fee in § 52.01 as further justification for enacting this proposal now. Global warning is not under our power to control and has recently proven it will cause substantial, unprecedented, and increasing flooding damages to private and public property without substantial and continuing city investment in stormwater management facilities. This presents a very good argument that we do not need to just maintain our stormwater management facilities, but we must improve and enhance them with revenue from the Stormwater Management Utility Fee. This further ensures that this proposed Stormwater Management Utility Fee is legal and constitutional. My new wording is found in § 52.01 (B). Another proposal to help ensure that this stormwater utility fee is constitutional is to create a clear administrative appeal procedure that any person must follow prior to filing suit in court. This simple appeal initially to Public Works Director Chris Brown allows any ratepayers or owner to present any claim that due to their property's unusual topography or their up-to-date, state-of-the-art private stormwater management infrastructure, they should be relieved from paying some or all of the Stormwater Management Utility Fee. The ratepayer/ owner can get this answer without having to hire an attorney (which would be needed if the ratepayer had to file suit). If the ratepayer/ owner is dissatisfied by Chris Brown's decision, it can be appealed to the City Council. This appeal process ensures that the City Council has the power to address and resolve all potential claims of illegality or unconstitutionality of the Stormwater Management Utility Fee without the need for expensive litigation. I do not offer nor do I believe any amendments or changes are needed in Sections 52.02 through 52.07. I also have not suggested any change in Section 52.12 Sustainable Credit Framework. I have rewritten both § 52.08 Collection of Stormwater Management Utility Fee and § 52.11 Administration and Appeals in their entirety. I have deleted § 52.13 and placed its wording in § 52.08. It would not be a mistake to consider referring this proposed Stormwater Management Utility Fee Chapter to a vote of the people which would defeat any argument that the Stormwater Management Utility Fee is tax rather than a fee. But I believe the proposed new appeal process provides substantial legal and constitutional protection to ensure the City would not inadvertently apply the fee improperly. I can draft a referral -to -the -voters amendment of the enacting ordinance if any Council Member does want to submit the Stormwater Management Utility Fee to the electors. I have placed actual dates for this Stormwater Management Utility Fee to be effective (August 2025) rather than the sometimes confusing "after a year" language that was proposed. I also changed from requiring the final Sustainable Credit Framework be available six months before the effective date to four months so this can make the August 2025 effective date. We certainly do not want the January 2026 3% increase to occur only a month after the initial billing including the fee is first sent out. I have had extensive discussions with Chief of Staff Susan Norton, Public Works Director Chris Brown, and Stormwater Engineer Alan Pugh about these modifications of what was approved in substance in your previous Resolution of Intent. I believe that we are in agreement that these changes are compatible with the City Council's intention and will improve the procedure for charging and collecting the fee. Therefore, I am presenting these proposed changes to the City Council for your discussion and hopefully your approval. Attached is the new (hopefully final) proposed Exhibit A which will become Chapter 52 Stormwater Management Utility Fee once and if the City Council or the voters have approved it. C�]:�1�=1:�+�[+� t�]:7►T1�i�T� ��a►�i /_1 �/_�rT=1��if�`►�i>��I��'1 � �1J ARTICLE I - GENERAL PROVISIONS 52.01- Purpose The Stormwater Management Utility Fee is hereby established to create an equitable, efficient, and dedicated funding source for stormwater management services in the City of Fayetteville and provide for the safety, preserve the health and promote the prosperity of Fayetteville residents, businesses and institutions. The Stormwater Management Utility Fee is further needed: (A) To establish an equitable, fair, efficient and dedicated funding source for stormwater management services in the City of Fayetteville, Arkansas in addition to other taxpayer funds so that better long- range planning can be achieved. (B) To provide essential improvements and enhancements to the city's stormwater management facilities necessitated by substantially increased flooding caused by global warming and climate change as evidenced recently in North Carolina, Madrid Spain, and many other locations. (C) To lessen or deter hazards to persons, property and the environment caused by increased runoff, obstructions to drainage and introduction of excessive silts, debris and pollutants into the drainage system, lakes, ponds, streams, rivers and other water bodies in the City of Fayetteville, and to otherwise promote the public health, safety and welfare of the public. (D) To fund the City's MS4 Stormwater Management Program for which it is expected to implement a series of minimum control measures and report on their progress annually. In addition to new measures with each 5-year permit renewal, the City is projected to meet the population threshold of 100,000 by 2030 and could be designated a medium MS4 community, triggering additional mandated activities. (E) To administer the National Flood Insurance Program and its Community Rating System which provides property owners with credits to reduce their flood insurance premiums, (F) To equitably and legally address drainage needs, also known as stormwater management, to protect public health, safety, and welfare and to reduce flooding on city streets thereby ensuring access of emergency vehicles to all properties within the City during flood events, by providing resources for construction, maintenance, and operation of stormwater facilities. (G) To implement additional watershed improvements of the City's waters in general, and specifically, that of Beaver Lake, the City's drinking water source, and the Illinois River. 52.02 - Definitions The following definitions shall apply to this chapter: Billing Unit shall mean the unit by which stormwater utility bills are calculated. A single billing unit shall be equal to 1,000 square feet of impervious area. Customer shall mean all persons or entities to whom the Stormwater Management Utility Fee is properly billed. A customer is further defined as a person or an entity billed for sanitary sewer services within the City limits. CHAPTER 52. STORMWATER, FLOOD MANAGEMENT UTILITY 9 Credit shall mean a conditional, renewable reduction in the amount of the fee owed by a customer in accordance with the Sustainable Credit Framework. Impervious surface or area means a surface or area that allows little, if any, stormwater to penetrate to the soil under such surface. Gravel areas are deemed impervious for this chapter. A City right-of-way on which an impervious surface has been paved or otherwise placed, such as city sidewalks, city trails, and city drainage facilities shall not be counted as an impervious area for the underlying property owner when determining the total impervious area for the Stormwater Management Utility Fee. Public customer shall mean a local public agency including property of a school district within the City of Fayetteville. Public Stormwater System shall mean all stormwater conveyance systems and appurtenances located within the City of Fayetteville right-of-way or public drainage easements. All other stormwater conveyance systems and appurtenances shall be considered Private Stormwater Systems. Stormwater Management Utility Fee is the fee applicable to all real property within the City of Fayetteville, Arkansas which is billable to the City's Sewer Utility customers except for agencies of the State of Arkansas, Federal Government, and Washington County owned structures. Tax-exempt customer shall mean those private organizations that qualify for property tax exemptions under the Arkansas Constitution, Article 16, § 5, based on actual use. Examples include churches, cemeteries as well as property used exclusively for public charity. 52.03 - Applicability (A) This chapter shall apply to all real property within the jurisdiction of the City of Fayetteville, Arkansas for which sanitary sewer is provided upon which a city stormwater utility fee ordinance may be enforced. The Stormwater Management Utility Fee shall not be assessed against the University of Arkansas, other State Agency property, Federal Agency property, Washington County property, or the runways and taxi ways of the Fayetteville Executive Airport. (B) City -owned real property constituting the municipal drainage system, including public streets, public rights -of -way, drainage facilities, and related infrastructure is not served by a sanitary sewer and thus is not subject to a stormwater utility fee. (C) The requirements of this chapter do not relieve landowners, developers, other individuals, and entities from their responsibility for complying with the obligations of other portions of the Unified Development Code. 52.04-52.05 - Reserved ARTICLE II — STORMWATER MANAGEMENT UTILITY FUND 52.06 - Establishment of a Stormwater Management Utility Fund Pursuant to A.C.A. § 14-235-201 and other state law, the City of Fayetteville hereby creates a fund entitled the "Stormwater Management Utility Fund" for the purpose of segregating, identifying, and controlling revenues and expenses for operation of the City of Fayetteville Stormwater Management CHAPTER 52. STORMWATER, FLOOD MANAGEMENT UTILITY Program and other storm -related equipment, construction, materials, supplies or services attributable to these functions. The following revenue sources shall be deposited in said fund: (A) All revenue collected by or on behalf of the Stormwater Management Utility Fee. (B) Revenue from contributions in -lieu of onsite detention or from developers as contributions for required off -site drainage improvements, which may include bridge assessments. (C) Any interest earned on monies held in the Stormwater Management Utility Fund. (D) Any other revenue as may be determined appropriate by the City Council, including but not limited to general revenue, bond and grant proceeds. These revenues shall be used exclusively for the purposes listed in Article I — General Provisions. 52.07 — Authorization of a Stormwater Management Utility Fee The Stormwater Management Utility Fee is a utility fee that is hereby authorized to be charged on most real property within the City of Fayetteville, Arkansas. The fee shall be billable to the City's Sewer Utility customers. The rate structure for the utility fee shall: (A) Be based on the square footage of impervious area on a property, (B) Be owner / customer -neutral, (C) Use a billing unit of 1,000 square feet of impervious area, (D) Slot property within the following six -tier billing unit structure: Tier 1 Tier Range (by square footage of impervious area on a property) Billing Units 1.25 Initial Monthly Fee Less than 2,000 $1.69 2 2,001 to 3,500 2.75 $3.71 3 3,501 to 5,000 4.25 $5.73 4 5,001 to 6,500 5.75 $7.76 5 6,501 to 8,000 7.25 $9.79 6 More than 8,000 See (F) See (F) (E) For Tiers 1 through 5, the billing unit in the chart shall be multiplied by the billing rate per unit rounded down to the nearest cent. (F) For Tier 6, properties with impervious area greater than 8,000 square feet, the actual impervious area is divided by 1,000 and multiplied by the monthly rate per billing unit. (G) The initial rate per billing unit shall be $1.35. This rate shall be increased by 3% per year beginning in the January 2026 billing period. No rates shall increase after 2031 without a further rate study. (H) Fees for sewer customers on properties with multiple sewer accounts shall be based on the individual sewer customer's percentage of total impervious area of the property or properties that may be attributed to the customer's account, included any areas of parking, common use areas, or other impervious area on the attributable properties. (1) Sewer customers or property owners may apply to have the fee for their property mitigated or reduced by the Sustainable Credit Framework. CHAPTER 52. STORMWATER, FLOOD MANAGEMENT UTILITY -3 52.08 - Collection of the Stormwater Management Utility Fee The Stormwater Management Utility Fee shall be placed for required payment and collection upon all established City utility bills on which the City may constitutionally and legally assess such Stormwater Management Utility Fee beginning with the August, 2025 utility bills provided to utility customers. The Stormwater Management Utility Fee shall continue to be collected every month thereafter with such Stormwater Management Utility Fee increasing by three percent (3%) in January 2026 and annually thereafter through 2031. Any additional increases after 2031 shall require another rate study before implementation. 52.09 — Level and Extent of Service Policies The level of services funded by the Stormwater Management Utility Fees are dependent upon the amount of revenue generated by this Utility Fee, as well as possible general fund, sales tax bond, grants and other sources. These revenues shall fund the operation and maintenance, engineering and planning, regulatory compliance, stormwater capital improvements and administration of the City of Fayetteville's MS4 Program. The most recently adopted version of the City of Fayetteville Drainage Criteria Manual and Green Stormwater Practices will serve as the basis for the extent of stormwater service related to: (A) Public roads, public rights of way and public detention ponds, (B) Drainage features within existing dedicated public easements (excluding private commercial detention ponds). (C) These services extend to the downstream end of the first private infrastructure connected to the City of Fayetteville's drainage system. (D) Prior to City accepting responsibility for any private stormwater system, its owner must dedicate a drainage easement to the City of sufficient size as determined by the City to allow access to and work on the drainage facilities with appropriate equipment. 52.10 - Reserved ARTICLE III - ADMINISTRATION 52.11- Administration and Appeals (A) The City Engineer is responsible for the administration of this chapter. (B) A city sewer customer (an owner or tenant of any property within the City receiving sewer service from the City) which is subject to the Stormwater Management Utility Fee in August of 2025 may appeal the initial Stormwater Management Utility Fee assessed amount for their property to the City Engineer who will review the following: 1) The amount of impervious surface of the property and the proper amount of the Stormwater Management Utility Fee charged for this impervious surface. 2) The amount initially allowed for any Stormwater Management Utility Fee credit or the denial of any legal or constitutional exemption or defense to the payment of such Stormwater Management Utility Fee. 3) Any allegation or claim that the affected city sewer customer asserts that the Stormwater Management Utility Fee may not be legally or constitutionally assessed against their property. 4) Such appeal to the City Engineer shall be in writing, shall designate all of the city sewer customer's objections and claims against the amount assessed, the amount of credit CHAPTER 52. STORMWATER, FLOOD MANAGEMENT UTILITY -4- allowed, any legal or constitutional arguments that this fee violates the city sewer customer's rights, and shall be signed by the city sewer customer (tenant if applicable and also by the property owner or the legal and proper agent for trusts, LLCs, corporations and other non -human entities owning the property). 5) Such appeal must be filed in the Development Services Office no later than thirty (30) calendar days after the utility bills containing the Stormwater Management Utility Fee applicable to their property were distributed to the property owner or city sewer customer in August of 2025. 6) The City Engineer shall provide the written response and conclusions concerning all objections or claims presented by the appealing owner to the sewer customer's address currently used for utility bills by first class mail or to the owner's mailing address (if different) or by email if the owner has supplied this to City Engineer. (C) Should the appealing owner disagree or feel aggrieved by the written decision of the City Engineer, the property owner may appeal the City Engineer's decision to the Fayetteville City Council. 1) All appeals shall be submitted in writing to the Fayetteville City Clerk/Treasurer's Office within ten (10) business days from the date that the City Engineer rendered and sent the decision to the appellant. 2) All appeals shall explain why the appellant contends that the City Engineer's decision was in error. The appellant should include all of its claims, including any legal or constitutional arguments that would render the Stormwater Management Utility Fee invalid as applied to this appellant. (D) The City Engineer (and on appeal the City Council) may consider whether the property whose owner is appealing from some or all of the Stormwater Management Utility Fee requirements has: 1) Unique topography that could limit or affect the amount of benefits from the City's improving stormwater management measures; and 2) Existing and well -maintained private stormwater management facilities that do not now concentrate nor direct excessive stormwater to the potential harm of downhill neighbors or city stormwater management facilities; and 3) Proper plans to alter any existing private stormwater management facilities and agrees to promptly and fully construct such facilities to reduce or prevent excessive stormwater from harming downhill neighbors or the city stormwater management facilities. (E) If the City Engineer (and on appeal the City Council) determines that the Stormwater Management Utility Fee is fair and reasonable and bears a reasonable relationship to the benefits conferred upon the owner of this property, then the full amount of the Stormwater Management Utility Fee should be required to be paid (less any credits). If not, then the City Engineer and/or City Council shall determine the proper amount of the fee that would be fair, reasonable and bear a reasonable relationship to the benefits conferred and establish that amount as the proper Stormwater Management Utility Fee for this owner's property. 52.12 —Sustainable Credit Framework (A) A Sustainable Credit Framework will be established by the City Council that provides all Stormwater Management Utility customers with an opportunity to reduce their normal fees. Customers may qualify for renewable fee reductions by demonstrating activities or stormwater practices that increase the water quality and thereby reduce the water quality and quantity burden imposed on the City of Fayetteville's drainage system. A maximum of 75 percent credit may be achieved by one or more of the following: (1) Compliance with the City's Drainage Criteria Manual for water quality, channel protection, and flood protection. CHAPTER 52. STORMWATER, FLOOD MANAGEMENT UTILITY (2) Compliance with an industrial or institutional stormwater permit. (3) Public customers that establish contracts, or Interlocal Cooperation Agreements, with the City under § 25-20-104 will receive a credit recognizing the value of their public efforts to reduce stormwater runoff, in accordance with the terms of the interlocal agreement. (4) Using shared parking lots to minimize the creation of new impervious area. (5) Property retrofits using Water Quality, Flood, and Tree Mitigation Measures from the Drainage Criteria Manual. (6) Tax-exempt customers can apply for credits for approved Stormwater Education Program and Stormwater Stewardship Activities. (B) The final Sustainable Credit Framework, including appropriate application forms and instructions, will be developed and available to customers a minimum of four (4) months in advance of the effective date of the initial collection of the Stormwater Management Utility Fee. 52.13 - Billing and collection The Stormwater Management and Fee shall be administered and collected in the same manner as the City's sewer utility. 52.14 -52.15 - Reserved CHAPTER 52. STORMWATER, FLOOD MANAGEMENT UTILITY -6- EXH I BIT A CHAPTER 52: STORMWATER MANAGEMENT UTILITY FEE ARTICLE I - GENERAL PROVISIONS 52.01 - Purpose The Stormwater Management Utility Fee is hereby established to create an equitable, efficient, and dedicated funding source for stormwater management services in the City of Fayetteville and provide for the safety, preserve the health and promote the prosperity of Fayetteville residents, businesses and institutions. The purposes for the Stormwater Management Fee further include: (A) To establish an equitable, fair, efficient and dedicated funding source for stormwater management services in the City of Fayetteville, Arkansas in addition to other taxpayer funds so that better long- range planning can be achieved. (B) To lessen or deter hazards to persons, property and the environment caused by increased runoff, obstructions to drainage and introduction of excessive silts, debris and pollutants into the drainage system, lakes, ponds, streams, rivers and other water bodies in the City of Fayetteville, and to otherwise promote the public health, safety and welfare of the public. (C) To fund the City's MS4 Stormwater Management Program for which it is expected to require a series of minimum control measures and report on their progress annually. In addition to new measures with each 5-year permit renewal, the City is projected to meet the population threshold of 100,000 by no later than 2030 and would be designated a medium MS4 community, triggering additional mandated activities. (D) To administer the National Flood Insurance Program and its Community Rating System which provides property owners with credits to reduce their flood insurance premiums, (E) To equitably and legally address drainage needs, also known as stormwater management, to protect public health, safety, and welfare and to reduce flooding on city streets thereby ensuring access of emergency vehicles to all properties within the City during flood events, by providing resources for construction, maintenance, and operation of stormwater facilities. (F) To implement additional watershed improvements of the City's waters in general, and specifically, that of Beaver Lake, the City's drinking water source, and the Illinois River. 52.02 - Definitions The following definitions shall apply to this chapter: Billing Unit shall mean the unit by which stormwater utility bills are calculated. A single billing unit shall be equal to 1,000 square feet of impervious area. Customer shall mean all persons or entities to whom the Stormwater Management Utility Fee is properly billed. A customer is further defined as a person or an entity billed for sanitary sewer services within the City limits. Credit shall mean a conditional, renewable reduction in the amount of the fee owed by a customer in accordance with the Sustainable Credit Framework. CHAPTER 52. STORMWATER, FLOOD MANAGEMENT UTILITY EXH I BIT A Public customer shall mean a local public agency including property of a school district within the City of Fayetteville. Public Stormwater System shall mean all stormwater conveyance systems located within the City of Fayetteville right-of-way or public drainage easements. All other stormwater conveyance systems shall be considered Private Stormwater Systems. Stormwater Management Utility Fee is the utility fee authorized by state law to provide necessary funds for a city to adequately address stormwater problems and needs through an equitable and fair utility fee derived from an expert analysis of the amount of impervious surface of each property which causes increased stormwater runoff that needs to be managed by the city to reduce or prevent flooding problems for our citizens and businesses. 52.03 - Applicability (A) The stormwater utility fee shall apply to all real property within the territorial jurisdiction of the City of Fayetteville for which sanitary sewer is provided by the City and upon which the City may constitutionally and legally assess such stormwater utility fee. (B) City -owned real property constituting the municipal drainage system, including public streets, public rights -of -way, drainage facilities, and related infrastructure is not served by a sanitary sewer and thus is not subject to a stormwater utility fee. (C) The requirements of this chapter do not relieve landowners, developers, other individuals, and entities from their responsibility for complying with the obligations of other portions of the Unified Development Code. 52.04-52.05 - Reserved ARTICLE II — STORMWATER MANAGEMENT UTILITY FUND 52.06 - Establishment of a Stormwater Management Utility Fund Pursuant to A.C.A. § 14-235-201 and other state law, the City of Fayetteville hereby creates a fund entitled the "Stormwater Management Utility Fund" for the purpose of segregating, identifying, and controlling revenues and expenses for operation of the City of Fayetteville Stormwater Management Program and other storm -related equipment, construction, materials, supplies or services attributable to these functions. The following revenue sources shall be deposited in said fund: (A) All revenue collected by or on behalf of the Stormwater Management Utility Fee. (B) Revenue from contributions in -lieu of onsite detention or from developers as contributions for required off -site drainage improvements, which may include bridge assessments. (C) Any interest earned on monies held in the Stormwater Management Utility Fund. (D) Any other revenue as may be determined appropriate by the City Council, including but not limited to general revenue, bond and grant proceeds. These revenues shall be used exclusively for the purposes listed in Article I — General Provisions. CHAPTER 52. STORMWATER, FLOOD MANAGEMENT UTILITY -2- EXH I BIT A 52.07 — Authorization of a Stormwater Management Utility Fee The Stormwater Management Utility Fee is a utility fee that is hereby authorized to be charged on most real property within the City of Fayetteville, Arkansas. The fee shall be billable to the City's Sewer Utility customers. The rate structure for the utility fee shall: (A) Be based on the square footage of impervious area on a property, (B) Be owner / customer type (residential, commercial, etc..) -neutral, (C) Use a billing unit of 1,000 square feet of impervious area, (D) Slot property within the following six -tier billing unit structure: Tier Tier Range (by square footage of impervious area on a property) Billing Units Initial Monthly Fee (Billing Unit times Billing Rate) 1 Less than 2,000 1.25 $1.69 2 2,001 to 3,500 2.75 $3.71 3 3,501 to 5,000 4.25 $5.73 4 5,001 to 6,500 5.75 $7.76 5 6,501 to 8,000 7.25 $9.79 6 More than 8,000 See (F) See (F) (E) For Tiers 1 through 5, the billing unit in the chart shall be multiplied by the billing rate per unit rounded down to the nearest cent. (F) For Tier 6, properties with impervious area greater than 8,000 square feet, the actual impervious area is divided by 1,000 and multiplied by the monthly rate per billing unit. (G) The initial rate per billing unit shall be $1.35. This rate shall be increased by 3% per year beginning in the January 2026 billing period. No rates shall increase after 2031 without a further rate study. (H) Fees for sewer customers on properties with multiple sewer accounts shall be based on the individual sewer customer's percentage of total impervious area of the property or properties that may be attributed to the customer's account, included any areas of parking, common use areas, or other impervious area on the attributable properties. (1) Sewer customers or property owners may apply to have the fee for their property mitigated or reduced by the Sustainable Credit Framework. 52.08 — Initial Charge for the Stormwater Management Utility Fee The initial assessment of the Stormwater Management Utility Fee established shall be charged beginning one year after the effective date of the ordinance. 52.09 — Level and Extent of Service Policies The level of services funded by the Stormwater Management Utility Fees are dependent upon the amount of revenue generated by this Utility Fee, as well as possible general fund, sales tax bond, grants and other sources. These revenues shall fund the operation and maintenance, engineering and planning, regulatory compliance, stormwater capital improvements and administration of the City of Fayetteville's MS4 Program. The most recently adopted version of the City of Fayetteville Drainage Criteria Manual and Green Stormwater Practices will serve as the basis for the extent of stormwater service related to: (A) Public roads, public rights of way and public detention ponds(detention pond maintenance limited to activities necessary for proper functionality), CHAPTER 52. STORMWATER, FLOOD MANAGEMENT UTILITY -3- EXH I BIT A (B) Drainage features within existing dedicated public easements (excluding private commercial detention ponds). (C) These services extend to the downstream end of the first private infrastructure connected to the City of Fayetteville's drainage system. (D) Prior to City accepting responsibility for any private stormwater system, its owner must dedicate a drainage easement to the City of sufficient size as determined by the City to allow access to and work on the drainage facilities with appropriate equipment. The City Engineer shall determine the sufficiency of the width and extent of easements. 52.10 - Reserved ARTICLE III -ADMINISTRATION 52.11- Administration and Appeals (A) The City Engineer is responsible for the interpretation and administration of this chapter. (B) Owners may appeal the initial amount of the Stormwater Management Utility Fee credit allowed denial of exemption or other dispute to the City Engineer, who shall determine the validity of any such appeal. The City Engineer shall set forth the requirements of any such appeal in the Drainage Criteria Manual. The City Engineer shall report the amount of any requested credit to be allowed in writing to the appellant and maintain such record by the Engineering Department for at least one year. (C) After exhausting administrative means with the City Engineer, customers desiring to further appeal of an impervious area estimate, fee or credit can be heard by The City Water and Sewer Committee pursuant to Chapter 155: Appeals." 52.12 —Sustainable Credit Framework (A) A Sustainable Credit Framework will be established by the City Council that provides all Stormwater Management Utility customers with an opportunity to reduce their normal fees. Customers may qualify for renewable fee reductions by demonstrating activities or stormwater practices that increase the water quality and thereby reduce the water quality and quantity burden imposed on the City of Fayetteville's drainage system. Activities eligible for credit include the following: (1) Compliance with an industrial stormwater permit (2) Public customers that establish contracts, or Interlocal Cooperation Agreements, with the City under § 25-20-104 will receive a credit recognizing the value of their public efforts to reduce stormwater runoff, in accordance with the terms of the interlocal agreement. (3) Using shared parking lots to minimize the creation of new impervious area (4) Property retrofits using Water Quality, Flood, and Tree Mitigation Measures from the Drainage Criteria Manual. (5) Attendance at approved Stormwater Education Program and Stormwater Stewardship Activities. (6) Demonstration of no direct discharge of stormwater. CHAPTER 52. STORMWATER, FLOOD MANAGEMENT UTILITY -4- EXH I BIT A (B) The final Sustainable Credit Framework, including appropriate application forms and instructions, will be developed and available to customers a minimum of 6 months in advance of the effective date of the initial collection of the Stormwater Management Utility Fee. 52.13 - Billing and collection The Stormwater Management and Fee shall be administered and collected in the same manner as the City's sewer utility. 52.14-52.15 - Reserved CHAPTER 52. STORMWATER, FLOOD MANAGEMENT UTILITY 1-1