City of Palm Coast

Proposed Stormwater Ordinance

September 28, 2010

State Mandate

• In 1986, the Florida Legislature:

1. Declared that pollution to State waters was a “menace to public health and welfare.”

2. Mandated local governments establish stormwater management programs.

Funding Mechanism

• Fla. Legislature recognized local government needed a funding mechanism for stormwater plans and programs.

• Expressly authorized local governments to create stormwater utilities and charge “stormwater utility fees” sufficient to plan, construct, operate, and maintain stormwater management systems. §403.0893(1), Fla. Stat.

Stormwater Utility

Definition:• The funding of a stormwater management

program by assessing the cost of the program to the beneficiaries based on their relative contribution to its need.

• It is operated as a typical utility which bills services regularly, similar to water and wastewater services.§403.031(17), Fla. Stat.

Stormwater Program

Definition:

• Institutional strategy for stormwater management, including urban, agricultural, and other stormwater. §403.031(15), Fla. Stat.

Stormwater Management SystemDefinition:

A system which is designed and constructed or implemented to control discharges which are necessitated by rainfall events, incorporating methods to collect, convey, store, absorb, inhibit, treat, use, or reuse water to prevent or reduce flooding, overdrainage, environmental degradation and water pollution or otherwise affect the quantity and quality of discharges from the system. §403.031(16), Fla. Stat.

Traditional Utility Service

• Stormwater management programs are among the traditional utility services provided by governmental entities.

City of Gainesville v. State, 863 So. 2d 138 (Fla. 2003).

Stormwater User FeesCity of Gainesville v. State, 863 So. 2d 138 (Fla. 2003)

Factors:1. Name given the charge;2. Relationship between amount of fee and value of service or

benefit;3. Whether fee charged is only for users of the service or is charged

to all residents in a given area;4. Whether fee is voluntary – that is, whether property owner can

avoid the fee by refusing service;5. Whether fee is a monthly charge or a one-time charge;6. Whether the fee is charged to recover the cost of improvements

to a defined area or infrastructure or for the routine provision of service;

7. Whether the fee is a traditional utility service; and 8. Whether the fee is statutorily authorized as a fee.

Other Guiding Principles City of Gainesville v. State, 863 So. 2d 138 (Fla. 2003)

• Neither of the factors are controlling nor exclusive.

• Each factor is considered in light of the circumstances as a whole in each particular case.

• Creation of a statutorily-authorized utility strongly favors the validity of the fees imposed.

• Where a government entity provides access to traditional utility services, Fla. Sup. Ct. has not hesitated to uphold local ordinances imposing mandatory fees, regardless of whether the individual customer actually uses or desires the services.

• Setting of utility rates is often a complicated process and mathematical exactitude cannot be required. (citations omitted)

General Technical Findings

Jones Edmunds Final Report contains substantial technical analysis to support various aspects of the City’s stormwater management program. The Final Report also makes a few basic fundamental findings:

• Stormwater service area = area within Palm Coast limits that directly or indirectly contributes stormwater to a stormwater facility maintained by the City.

- Some areas of the City are excluded.

• All properties within the stormwater service area are considered to have a hydrologic connection and could be considered a “user” of the City’s stormwater services.

City CouncilLegislative Findings

• §24-131(b):

1. Adopts the findings/recommendations in Jones Edmunds Final Report

2. All land, whether developed or vacant, contribute stormwater runoff to/benefit from the City’s stormwater management facilities and systems, unless person otherwise demonstrates.

3. Vacant properties contribute stormwater runoff to/benefit from stormwater system less than developed properties.

4. Methodology/statistical estimates contained in Report used to calculate the stormwater fees are reasonable and equitable means to assess cost of City’s stormwater services which are provided to beneficiaries of City’s stormwater facilities and systems.

Categories of Stormwater Users

• §24-136(b) establishes categories of users and each category is assigned a corresponding ERU:

1. Single-Family Residential with one dwelling

2. Vacant Single-Family Residential

3. Multifamily Residential Properties incl. duplex, triplex, quadraplex, and other

4. Nonresidential/commercial

5. Vacant Bulk Land

6. Other Vacant Property

7. Other Impervious Areas.

Fee Adjustments

• A technical adjustment, credit, or waiver of up to 100% of the imposed stormwater fee may be granted on administrative appeal to City for any and all of the following:

1. Non-City stormwater facilities2. Mitigation for parcels bisected by the stormwater

service area boundary3. Mitigation for parcels conveying or storing stormwater4. Mitigation for significant on-site retention5. Mitigation for extra onsite detention6. Reduced Services.

Summary

Intent and Purpose of the Proposed ordinance:•To maintain a stormwater management program mandated and authorized by State law.•To charge developed or vacant property owners contributing runoff to/benefiting from the City’s stormwater facilities a stormwater “user fee” for property located within the City’s stormwater service area.•To establish a “user fee” that reasonably assesses the cost of the Program to the beneficiaries based on relative contribution to its need.