DIVISION 12-02-001
STORMWATER MANAGEMENT UTILITY

SECTIONS:

12-02-001-0001    FINDINGS OF FACT

12-02-001-0002    DEFINITIONS

12-02-001-0003    ESTABLISHMENT OF A STORMWATER MANAGEMENT UTILITY AND A UTILITY ENTERPRISE FUND

12-02-001-0004    PURPOSE AND RESPONSIBILITY OF THE UTILITY

12-02-001-0005    LIMITATION OF SCOPE OF RESPONSIBILITY

12-02-001-0006    BOUNDARIES AND JURISDICTION

12-02-001-0007    REQUIREMENTS FOR ON-SITE STORMWATER SYSTEMS: ENFORCEMENT METHODS AND INSPECTIONS

12-02-001-0008    GENERAL FUNDING POLICY

12-02-001-0009    INVESTMENT AND REINVESTMENT OF FUNDS AND BORROWING

12-02-001-0010    SEVERABILITY

12-02-001-0011    CONFLICT WITH OTHER ORDINANCES

12-02-001-0001 FINDINGS OF FACT

The City Council of the City of Flagstaff, Arizona makes the following findings of fact:

(a)    The professional engineering and financial analyses conducted on behalf of and submitted to the City properly assess and define the stormwater management problems, needs, goals, program priorities, costs of service and funding opportunities of the City.

(b)    Given the problems, needs, goals, program priorities, costs of service and funding opportunities identified in the professional engineering and financial analyses submitted to the City, it is appropriate to authorize the establishment of a separate enterprise accounting unit which shall be dedicated specifically to the management, construction, maintenance, protection, control, regulation, use, and enhancement of stormwater systems and programs in the City of Flagstaff in concert with other water resource management programs.

(c)    Urban development in the City has radically altered the natural hydrology of the area and the hydraulics of stormwater systems, with many natural elements having been replaced or augmented by man-made facilities. Urban development continues, and the City recognizes that additional growth will result in further alteration of stormwater systems throughout the City. Therefore, a stormwater utility service area subject to stormwater service charges should encompass the entirety of the City of Flagstaff.

(d)    The stormwater needs in the City of Flagstaff include, but are not limited to, protecting the public health, safety, and welfare of its property owners, citizens, and residents, including the protection and enhancement of the City’s water resources. Provision of stormwater management programs, services, systems, and facilities therefore renders and/or results in both service and benefit to individual properties, property owners, citizens, and residents of the City and to properties, property owners, citizens, and residents of the City concurrently in a variety of ways as identified in the professional engineering and financial analyses.

(e)    The City of Flagstaff presently owns and operates stormwater management systems and facilities, which have been developed, installed, and acquired through various mechanisms over many years. The future usefulness and value of the existing stormwater systems and facilities owned and operated by the City of Flagstaff, and of future additions and improvements thereto, rests on the ability of the City to effectively manage, construct, protect, operate, maintain, control, regulate, use, and enhance the stormwater systems and facilities in the City, in concert with the management of other water resources in the City. In order to do so, the City must have adequate and stable funding for its stormwater management program operating and capital investment needs.

(f)    The City Council finds, concludes, and determines that a Stormwater Management Utility service charge is the most practical and appropriate means of funding to properly deliver stormwater management services and benefits throughout the City, and the most equitable means to fund stormwater programs, services, systems, and facilities in the City, and that other funding mechanisms as described in the professional engineering and financial analyses prepared for the City offer supplementary funding opportunities that will enable the City to improve the long-term adequacy and equity of funding but do not have sufficient revenue capacity to support the entirety of the projected stormwater management program.

(g)    The City Council finds that credits against stormwater utility service charges are an appropriate means of adjusting fees, rates, rentals, charges, fines, and penalties in certain cases and directs that such crediting mechanisms be addressed as part of the detailed cost of service and rate analyses necessary to implement the funding of the Stormwater Management Utility. A Credit Manual for determining available credits against stormwater utility service charges has been adopted by Ordinance No. 2004-22 by the City Council.

(Ord. 2001-18, Add, 07/17/2001); (Ord. No. 2006-02; 06/06/2006)

12-02-001-0002 DEFINITIONS

Unless the context specifically indicates otherwise, the meaning of words and terms used in this article shall be as set forth below.

(a)    ABATEMENT. Any action deemed necessary by the City or its officers or agents to remedy, correct, control, or eliminate a condition within, associated with, or impacting a stormwater drainage system or the water quality of receiving waters shall be deemed an abatement action.

(b)    CREDITS. Credit shall mean a conditional reduction in the amount of a stormwater service charge or other fees, rates, rentals, charges, fines, and penalties to an individual property based on the provision and continuing presence of an effectively maintained and operational on-site stormwater system or facility, conservation or other protective easement, or continuing provision of a program or service or activity that reduces the Stormwater Management Utility’s cost of providing stormwater management programs, services, systems and facilities.

(c)    STORMWATER MANAGEMENT PROGRAMS, SERVICES, SYSTEMS AND FACILITIES. Stormwater management programs and services are the administrative, engineering, operational, regulatory, and capital improvement activities and functions performed in the course of managing the stormwater systems of the City, plus all other activities and functions necessary to support the provision of such programs and services. Stormwater management systems, and facilities are those natural and man-made channels, swales, ditches, swamps, rivers, streams, creeks, branches, reservoirs, ponds, drainage ways, inlets, catch basins, pipes, head walls, storm sewers, lakes, and other physical works, properties, and improvements which transfer, control, convey or otherwise influence the movement of stormwater runoff and its discharge to and impact upon receiving waters.

(d)    STORMWATER SERVICE CHARGES. Stormwater service charges shall mean a periodic service charge imposed for the purpose of funding costs related to stormwater management programs, services, systems, and facilities. Stormwater service charges may also include, but are not limited to, special charges to individual properties or persons for services, systems, or facilities related to stormwater management, including but not limited to charges for development plan review, inspection of development projects and on-site stormwater control systems, enhanced levels of stormwater service above and beyond the levels normally provided by City of Flagstaff, and abatement of nuisances as provided for in this Article.

(Ord. 2001-18, Add, 07/17/2001)

12-02-001-0003 ESTABLISHMENT OF A STORMWATER MANAGEMENT UTILITY AND A UTILITY ENTERPRISE FUND

There is hereby established within the City of Flagstaff a Stormwater Management Utility for the purpose of conducting the City’s stormwater management program. The City Manager shall establish and maintain a Stormwater Management Utility enterprise fund in the City budget and accounting system, which shall be and remain separate from other funds. All revenues of the Utility shall be placed into the Stormwater Management Utility enterprise fund and all expenses of the Utility shall be paid from the fund, except that other revenues, receipts, and resources not accounted for in the Stormwater Management Utility enterprise fund may be applied to stormwater management programs, services, systems, and facilities as deemed appropriate by the City Council.

(Ord. 2001-18, Add, 07/17/2001)

12-02-001-0004 PURPOSE AND RESPONSIBILITY OF THE UTILITY

The City of Flagstaff Stormwater Management Utility is established for the purpose of managing, acquiring, constructing, protecting, operating, maintaining, enhancing, controlling, and regulating the use of stormwater drainage systems in the City. The Utility shall, on behalf of the City and the citizens of the City: administer the stormwater management program; perform studies and analyses as required; collect service charges, system development charges, in-lieu of construction fees and other funding as allowed by law, and obtain and administer grants and loans as authorized by the City Council; prepare capital improvement plans and designs; perform routine maintenance and remedial repair of the stormwater systems; acquire, construct, and improve stormwater systems; acquire necessary lands, easements, rights-of-way, rights-of-entry and use, and other means of access to properties to perform its duties; regulate the on-site control, conveyance, and discharge of stormwater from properties; obtain federal and state permits required to carry out its purpose; enter into operating agreements with other agencies; educate and inform the public about stormwater management; and perform, without limitation except by law, any stormwater management functions and activities necessary to ensure the public safety, protect private and public properties and habitat, and enhance the natural environment and waters of the City and the State of Arizona.

(Ord. 2001-18, Add, 07/17/2001)

12-02-001-0005 LIMITATION OF SCOPE OF RESPONSIBILITY

The purpose and responsibility of the Stormwater Management Utility shall be limited by the following legal and practical considerations.

(a)    The City of Flagstaff owns or has legal access for purposes of operation, maintenance, and improvement only to those stormwater systems and facilities which: (1) are located within public streets, other rights-of-way, and easements; (2) are subject to easements, rights-of-entry, rights-of-access, rights-of-use, or other permanent provisions for adequate access for operation, maintenance, monitoring, and/or improvement of systems and facilities; or (3) are located on public lands to which the City has adequate access for operation, maintenance, and/or improvement of systems and facilities.

(b)    Operation, maintenance, and/or improvement of stormwater systems and facilities which are located on private property or public property not owned by the City of Flagstaff and for which there has been no public dedication of such systems and facilities for operation, maintenance, monitoring, and/or improvement of the systems and facilities shall be and remain the legal responsibility of the property owner, except as that responsibility may be otherwise affected by the laws of the State of Arizona and the United States of America.

(c)    It is the express intent of this Ordinance to protect the public health, safety, and welfare of all properties and persons in general, but not to create any special duty or relationship with any individual person or to any specific property within or outside the boundaries of the City. The City of Flagstaff expressly reserves the right to assert all available immunities and defenses in any action seeking to impose monetary damages upon the City, its officers, employees and agents arising out of any alleged failure or breach of duty or relationship as may now exist or hereafter be created.

To the extent any permit, plan approval, inspection or similar act is required by the City as a condition precedent to any activity or change upon property not owned by the City, pursuant to this or any other regulatory ordinance, regulation, or rule of the City or under Federal or State law, the issuance of such permit, plan approval, or inspection shall not be deemed to constitute a warranty, express or implied, nor shall it afford the basis for any action, including any action based on failure to permit or negligent issuance of a permit, seeking the imposition of money damages against the City, its officers, employees, or agents.

(Ord. 2001-18, Add, 07/17/2001)

12-02-001-0006 BOUNDARIES AND JURISDICTION

The boundaries and jurisdiction of the Stormwater Management Utility shall encompass all of the City of Flagstaff, and such additional areas lying outside the corporate limits of the City of Flagstaff as shall be subject to intergovernmental agreements for stormwater management as approved by City Council.

(Ord. 2001-18, Add, 07/17/2001)

12-02-001-0007 REQUIREMENTS FOR ON-SITE STORMWATER SYSTEMS: ENFORCEMENT METHODS AND INSPECTIONS

(a)    All property owners and developers of real property to be developed within the City of Flagstaff shall provide, manage, maintain, and operate on-site stormwater systems and facilities sufficient to collect, convey, detain, control, and discharge stormwater in a safe manner consistent with all City development regulations and the laws of the State of Arizona and the United States of America. Any failure to meet this obligation shall constitute a nuisance and be subject to an abatement action filed by the City in a court of competent jurisdiction. In the event a public nuisance is found by the court to exist, which the owner fails to properly abate within such reasonable time as allowed by the court, the City may enter upon the property and cause such work as is reasonably necessary to be performed, with the actual cost thereof charged to the owner in the same manner as a stormwater service charge as provided for in this Article.

(b)    In the event that the City shall file an action pursuant to Section 12-02-001-0007 (a), from the date of filing such action the City shall have all rights of judgment and collection through a court of competent jurisdiction as may be perfected by action.

(c)    The City shall have the right, pursuant to the authority of this Ordinance, for its designated officers and employees to enter upon private property and public property owned by other than the City, upon reasonable notice to the owner thereof, to inspect the property and conduct surveys and engineering tests thereon in order to assure compliance with any order or judgment entered pursuant to this Section.

(Ord. 2001-18, Add, 07/17/2001)

12-02-001-0008 GENERAL FUNDING POLICY

(a)    It shall be the policy of the City of Flagstaff that funding for the stormwater management utility program, services, systems, and facilities shall be equitably derived through methods which have a demonstrable relationship to the varied demands and impacts imposed on the stormwater program, services, systems, and facilities by individual properties or persons and/or the level of service rendered by or resulting from the provision of stormwater programs, systems, and facilities. Stormwater service charge rates shall be structured so as to be fair and reasonable, and the resultant service charges shall bear a substantial relationship to the cost of providing services and facilities throughout the City. Similarly situated properties shall be charged similar rents, rates, charges, fees, or licenses. Service charge rates shall be structured to be consistent in their application and shall be coordinated with the use of any other funding methods employed for stormwater management within the City. Plan review and inspection fees, special fees for services, fees in-lieu of regulatory requirements, impact fees, system development charges, special assessments, general obligation and revenue bonding, and other funding methods and mechanisms available to the City may be used in concert with stormwater service charges and shall be coordinated with such charges in their application to ensure a fair and reasonable service charge rate structure and overall allocation of the cost of services and facilities.

(b)    The cost of stormwater management programs, services, systems, and facilities to be recovered through stormwater service charges may include operating, capital investment, and non-operating expenses, prudent operational and emergency reserve expenses, and stormwater quality as well as stormwater quantity management programs, needs, and requirements.

(c)    To the extent practicable, credits against stormwater service charges and/or other methods of funding stormwater management shall be provided for on-site stormwater control systems and activities constructed, operated, maintained and performed to the City’s standards by private property owners which reduce, eliminate, mitigate, or compensate the City Stormwater Management Utility’s cost of providing programs, services, systems, and facilities. Such credits shall reflect the impact that the on-site stormwater control systems and activities have upon stormwater runoff discharged to public stormwater programs, services, systems, or facilities or to private stormwater facilities which impact the proper function of public stormwater programs, systems, services, or facilities or upon the water quality of receiving waters.

(d)    To the extent practicable, credits against stormwater service charges and/or other methods of funding stormwater management shall be provided for those portions of a property permanently and perpetually dedicated by a conservation or other protective easement which reduces, eliminates, mitigates, or compensates for the impact that the property or person or other unrelated properties or persons may have upon stormwater runoff discharged to public stormwater systems or facilities or to private stormwater facilities or upon the water quality of receiving waters, or which improves the function of public stormwater programs, services, systems, or facilities or the water quality of receiving waters.

(e)    City Council has adopted, by Ordinance No. 2004-22, a Credit Manual that provides for the determination of service charge reductions as the result of implementation of on-site stormwater control systems.

(Ord. 2001-18, Add, 07/17/2001); (Ord. No. 2006-02)

12-02-001-0009 INVESTMENT AND REINVESTMENT OF FUNDS AND BORROWING

Funds generated for the Stormwater Management Utility from service charges, fees, rentals, rates, bond issues, loans, or other borrowing, grants, and other sources shall be utilized only for those purposes for which the Utility has been established as specified in this ordinance, including but not limited to: construction; regulation; planning; acquisition of interests in land, including easements; design and construction of facilities; maintenance of the stormwater system; billing and administration; water quantity and water quality management, including monitoring, surveillance, private maintenance inspection, construction inspection; public information and education, and other activities which are reasonably required. Such funds shall be invested and reinvested pursuant to the same procedures and practices established by the City for investment and reinvestment of funds. The City Council may use any form of borrowing authorized by the laws of the State of Arizona to fund capital acquisitions or expenditures for the Stormwater Management Utility. The City Council, in its discretion and pursuant to standard budgetary procedures, may supplement such funds with amounts from the General Fund or other funding sources.

(Ord. 2001-18, Add, 07/17/2001)

12-02-001-0010 SEVERABILITY

If any provision of this Ordinance shall be deemed or found to conflict with the Arizona Constitution, or to be pre-empted by state statute, then such provision of this Ordinance shall be deemed ineffective, but the remaining parts of this Ordinance shall remain in full force and effect.

(Ord. 2001-18, Add, 07/17/2001)

12-02-001-0011 CONFLICT WITH OTHER ORDINANCES

If any provision of this Ordinance shall conflict with the provisions of a prior ordinance of the City of Flagstaff, then the conflicting provision of the prior ordinance shall be deemed repealed and no longer in effect, and the provisions of this Ordinance shall govern.

(Ord. 2001-18, Add, 07/17/2001)