Section 15-24-13 Stormwater Utility Fee System

15-24-13 Stormwater Utility Fee System.

1. The Town maintains a system of storm and surface water management facilities including, but not limited to, inlets, conduits, manholes, channels, ditches, drainage easements, retention and detention basins, infiltration facilities, and other components as well as natural waterways.

2. The stormwater system in the Town needs regular maintenance, repair and improvements.

3. Stormwater quality is degraded due to erosion and the discharge of nutrients, metals, organic compounds including oil and grease, and other substances into and through the stormwater system.

4. Stormwater quantity is affected by erosion, design of drainage, maintenance of stormwater channels, channel vegetation, floodway and flood plain characteristics and changes, and deposition of material in the channels.

5. The public’s health, safety, and welfare are adversely affected by poor stormwater quality and flooding that result from inadequate management of both the quality and quantity of stormwater.

6. All real property in the Town either uses or benefits from the maintenance of the stormwater system.

7. The extent of use of the stormwater system by each property is dependant on factors that influence runoff, including land use and the amount of impervious surface on the property.

8. The costs of improving, maintaining, repairing, operating, and monitoring the stormwater system shall be allocated, to the extent practicable, to all property owners based on the impact of runoff from the impervious areas of their property on the stormwater control and conveyance system.

9. Management of the stormwater system to protect the public health, safety, and welfare as well as meet the Arizona Pollutant Discharge Elimination System Phase II permit and FEMA requirements requires adequate revenues. It is in the interest of the public to finance stormwater management with a fee system that is reasonable and equitable. Single-family residences will be charged a flat rate for one (1) ERU. Non-single-family and religious/educational property owners will be charged a multiple rate equal to the amount of impervious area on their property divided by the amount of one (1) ERU (four thousand (4,000) square feet). This formula will charge property owners on the basis of their properties’ impact to the stormwater system.

B. Authority. Authority for the adoption of a system of charges to fund the implementation of stormwater management programs is conferred on the Town by ARS 9-530, as amended.

C. Definitions. For the purposes of this chapter, the following words and phrases shall have the meanings indicated:

1. “Administrator of the Stormwater Utility” or “Administrator” means the Town Engineer, or designee, shall serve as the Administrator of the Stormwater Utility.

2. “Arizona Pollutant Elimination Discharge System (AZPDES)” means a program required under Section 402(b) of the Clean Water Act (CWA), in accordance with 40 CFR 123.22. The program specifies how the Arizona Department of Environmental Quality (Department) will administer the National Pollutant Discharge Elimination System (NPDES) program. The program is found in Article (3.1) of the Arizona Revised Statutes in Chapter 2, under Title 49 authorizing a state NPDES program. The administrative rules for an Arizona Pollutant Discharge Elimination System (AZPDES) program are consistent with, but no more stringent than, the NPDES program and the requirements of Sections 402(b) (state permit programs) and 402(p) (municipal and industrial stormwater discharges) of the CWA.

3. “Equivalent residential unit (ERU)” means approximate average amount of impervious area associated with single-family residential property in the Town.

4. “Base rate (BR)” means the Stormwater Utility flat fee to an ERU of four thousand (4,000) square feet of impervious surface.

5. “Commission” means the Stormwater Utility Commission for the Town of Oro Valley established under this article.

6. “Developed property” means real property which has been altered from its structures, or other impervious area.

7. “Undeveloped property” means real property in its untouched natural state.

8. “Fee” or “Stormwater Utility fee” means the charge established under this section and levied on owners of parcels or pieces of real property to fund the costs of stormwater management, implementation of the Stormwater Management Plan together with constructing, operating, maintaining, repairing, and improving the stormwater system in the Town.

9. “FEMA” means the Federal Emergency Management Agency.

10. “Fiscal year” means July 1st of a calendar year to June 30th of the next calendar year, both inclusive.

11. “Impervious surface area” means the number of square feet of horizontal surface covered by buildings and other impervious surface, which is compacted or covered with material that is resistant to infiltration by water, including, but not limited to, most conventionally surfaced streets, roofs, sidewalks, patios, driveways, parking lots, and any other oiled, graveled, graded, compacted, or other surface that impedes the natural infiltration of surface water.

12. “Multifamily dwelling” means a building with more than three (3) dwelling units (to include apartments and condominiums).

13. “Nonresidential property” means developed property other than single-family residential property. Such property shall include, but not be limited to, multifamily dwellings, commercial properties, industrial properties, parking lots, hospitals, recreational and cultural facilities, hotels, and offices.

14. “Educational facilities, religious institutions and nonprofits” means any developed public, private, or parochial school or any building recognized as a religious facility or nonprofit use.

15. “Property owner” means the property owner of record as listed in the Pima County Assessor’s roll. A property owner includes any individual, corporation, firm, partnership, or group of individuals acting as a unit, and any trustee, receiver, or personal representative.

16. “Single-family residential property (SFR)” means a developed property that serves the primary purpose of providing a permanent dwelling unit. Single-family residential property shall also include duplexes and triplexes. A single-family detached dwelling containing an accessory apartment or second dwelling unit is included in this definition.

17. “Stormwater utility fund” or “fund” means the fund created by this chapter to operate, maintain, repair, and improve the Town’s stormwater system and implement the Town’s Stormwater Management Plan.

18. “Stormwater Management Plan” means the planning, design, construction, regulation, improvement, repair, maintenance, operation of facilities and programs necessary for the Town to meet the compliance requirements of the Arizona Pollutant Discharge Elimination System (AZPDES) Phase II Municipal General Permit and FEMA Regulations as relating to water, flood plains, flood control, grading erosion, and sediment control along those activities.

19. “Stormwater system” means the system or network of storm and surface water facilities including but not limited to inlets, conduits, manholes, channels, ditches, drainage easements, retention and detention basins, infiltration facilities and other components as well as all natural waterways (including washes). It shall also mean the activities associated with implementing the Stormwater Management Plan.

20. “Water” means any stormwater, surface water, snow melt or ground water.

1. The Stormwater Management Plan is established to provide for the Town’s compliance with the AZPDES Phase II Municipal General Permit requirements and to provide the stormwater system necessary to convey stormwater, control flooding, and to protect the natural environment. The costs of complying with the AZPDES Phase II program and FEMA Regulations along with designing, developing, improving, operating, maintaining, and monitoring the stormwater system required in the Town should, therefore, be allocated, to the extent practicable, to all property owners based on their impact on the stormwater system. In order to provide revenue to fund those costs and to fairly allocate those costs, a Stormwater Utility Fund (the “fund”) is established.

2. All revenues collected from the Stormwater Utility fee, from grants, permit fees, penalties and other charges collected under this article, shall be deposited to the fund. The Town Council may make additional appropriations to the fund. All disbursements from the fund shall be for the purposes of the fund as set forth in subsection E of this section, and the fund shall be used for those purposes only.

E. Purposes of the Fund. The fund shall be used for the following purposes:

1. All costs of implementation and administration of the Stormwater Management Plan, including the establishment of reasonable operating and capital reserves to meet unanticipated or emergency stormwater management requirements. There shall be a reserve fund of fifteen percent (15%) of the collected annual stormwater fees as specified under Section 15-24-10 of this code.

2. Inspection and enforcement activities.

3. Billing and administrative costs.

4. Other activities that are reasonably required to accomplish the mission of the Stormwater Management Plan.

F. Stormwater Utility Fee. A monthly service charge is imposed upon all real property in the Town, as of the first day of each month, beginning January 1, 2008, to fund the Stormwater Management Plan and stormwater system with invoicing as defined in subsection J of this section. This service charge shall be known as the Stormwater Utility fee (“fee”). As any real property is developed or developed real property is annexed into the Town it will be subject to the fee. The fee is based on the cost of implementing a stormwater management program.

1. For purposes of determining the Stormwater Utility fee, all properties in the Town are classified into one of the following classes:

a. Single-family residential property; or

b. Nonresidential property; or

c. Educational facilities, religious institutions and nonprofits.

2. Single-Family Residential (SFR) Fee. All developed single-family residential properties in the Town shall be charged a flat Stormwater Utility fee, equal to the base rate, regardless of the size of the parcel or the improvements.

3. Non-Single-Family Residential Property (NSFR) Monthly Fee. A developed non-single-family residential (NSFR) property will be charged a fee for the number of ERUs of impervious area. The impervious area for developed NSFR property may be determined through site examination, mapping information, aerial photographs and other available information. NSFR without first flush capabilities or other approved stormwater pollution prevention devices shall pay the base rate times the number of ERUs on the site. The monthly fee shall be determined by dividing the total impervious surface (in square feet) by four thousand (4,000) and rounding that value up or down to the nearest whole ERU amount and then multiplying the result by the base rate to obtain the monthly fee. NSFR properties that incorporate first flush capabilities or other approved stormwater pollution prevention devices are eligible for a twenty-five percent (25%) reduction in the fee, providing they apply to and are approved by the Stormwater Utility Commission and meet the annual inspection and maintenance requirements.

4. Educational Facilities, Religious Institutions and Nonprofits Monthly Fee. A developed religious institution, school or other nonprofit property shall be eligible for a twenty-five percent (25%) fee reduction provided they apply to and are approved by the Stormwater Utility Commission. In order to qualify for the fee reduction, the educational facility, religious institution or nonprofit organization must conduct educational programs or other tasks on the topic of stormwater management as approved by the Stormwater Utility Commission. No developed educational facility, religious institution or nonprofit property shall pay less than seventy-five percent (75%) of the base rate. The monthly fee shall be determined by dividing the total impervious surface (in square feet) by four thousand (4,000) and rounding that value up or down to the nearest whole ERU amount and then multiplying the result by the base rate to obtain the monthly fee.

1. The Town Council shall, by resolution, establish the annual (fiscal year) monthly base rate for the Stormwater Utility fee. The base rate shall be calculated to ensure adequate revenues to fund the costs of stormwater management and to provide for the operation, maintenance, and capital improvements of the stormwater system in the Town.

2. A schedule of fees shall be maintained by the Stormwater Utility, three (3) copies of which shall be available at the Town Clerk’s office.

3. The Stormwater Utility Commission shall annually review the Stormwater Utility revenue requirements and recommend to the Town Council rate adjustments as necessary.

1. Property which is owned by the Town and other governmental agencies shall be exempt from the fee.

2. Undeveloped property shall be exempt from the fee.

1. Each property served by the Oro Valley Water Utility shall be billed monthly for the Stormwater Utility fee. Properties not served by the Oro Valley Water Utility shall be billed quarterly. The bill may be part of the Oro Valley Water Utility bill, a separate billing, or some other reasonable mechanism.

2. Service charges shall begin January 1, 2008, with invoicing at the end of the month or quarter, as appropriate.

K. Delinquent Stormwater Utility Fee Process/Penalties. For Oro Valley residents being served water by the Oro Valley Water Utility and charged their stormwater utility fees as part of their Water Utility bill, the Oro Valley Water Utility regulations shall apply to all delinquent fees.

For all other Oro Valley Stormwater Utility customers, the following shall be followed to obtain payment of delinquent fees and penalties:

1. Process. Stormwater Utility fees are overdue twenty-one (21) days after the Stormwater Utility bill is issued and a penalty for any overdue payments may be imposed.

a. The Stormwater Utility Manager shall send a delinquency notice to property owners responsible for Stormwater Utility fees demanding payment of their delinquent fee within ten (10) days of the date of the notice.

b. If there is no reply to the Stormwater Utility Manager’s letter, the Town Attorney’s office shall send a letter demanding payment of the Stormwater Utility fee from property owners who have not replied to the first notice. In the event that there is no response to the Town Attorney’s letter, the Town will initiate legal proceedings in the Oro Valley Magistrate Court after ten (10) days.

c. Failure to pay the fee, including any late charges, by the due date shall be considered a civil violation and a summons and complaint will be served on the property owner. The summons and complaint will be served on the property owner by a process server.

d. In the event the defendant(s) fail(s) to appear in court, the Oro Valley Magistrate is authorized to issue a default judgment against the defendant(s) in accordance with subsection (K)(2) of this section.

a. Civil Sanctions. A person found responsible for a violation of this article shall be sanctioned by the Magistrate or Hearing Officer as follows:

i. First violation within a twenty-four (24) month period: a sanction of not more than one hundred dollars ($100.00).

ii. Second violation within a twenty-four (24) month period: a sanction of not more than one hundred fifty dollars ($150.00).

iii. Third or subsequent violation within a twenty-four (24) month period: a sanction of not more than two hundred dollars ($200.00).

iv. The court may, at its discretion, reduce or suspend the sanction.

Sanctions are in addition to the delinquent Storm Water Utility fee, late fees and charges.

i. If, after being legally served with a summons and complaint, the party fails to appear at the hearing time designated in the summons and complaint and/or time designated for a hearing by the Court, that individual shall be deemed to have admitted the allegation in the complaint and the Court shall enter judgment and impose a civil sanction in accordance with the provisions of this chapter.

ii. Upon entry of the default judgment, the Court, in addition to the sanctions, may impose all applicable surcharges, security fees, a default judgment fee and other court fees as authorized by State law or Town ordinance.

iii. If any penalty ordered to be paid by the Magistrate or forfeited pursuant to default is not paid within thirty (30) days of the Magistrate’s order, a lien on the real property to which the delinquent stormwater fees apply may be filed in the amount of the judgment by the Town Attorney. The Magistrate may also institute judicial proceedings as provided by law to collect any such penalty. All penalties collected pursuant to this article shall be paid to and become the property of the Town.

1. A property owner may request correction of the fee by submitting the request in writing to the Stormwater Utility Administrator. Grounds for correction of the fee include:

a. Incorrect classification of the property for purposes of determining the fee;

b. Errors in the square footage of the impervious surface area of the property;

c. Mathematical errors in calculating the fee to be applied to the property; and

d. Errors in the identification of the property owner of a property subject to the fee.

2. The Stormwater Utility Administrator shall make a determination within thirty (30) days after the receipt of (as indicated by the receipt date stamp) the property owner’s completed written request for correction of the fee. The applicant may appeal the Administrator’s determination to the Stormwater Utility Commission.

3. A property owner must comply with all rules and procedures adopted by the Town when submitting a request for correction of the fee and must provide all information necessary for the Stormwater Utility Administrator to make a determination on a request for correction of the fee. If a property owner alleges an error under subsection (L)(1)(b) of this section, the request for correction must include a certification by a registered civil engineer or professional land surveyor of the impervious surface area of the property. Failure to comply with the provisions of this subsection shall be grounds for denial of the request. ((O)16-07 , 05/04/2016; (O)10-14 , 11/17/2010; (O)10-04, 04/07/2010; (O)07-40, 11/07/2007)