AN ORDINANCE relating to drainage services of Seattle Public Utilities (SPU); amending Section 21.33.010 of the Seattle Municipal Code to update definitions; amending Section 21.33.030 of the Seattle Municipal Code to update exemptions from drainage rates and adjust drainage rates; amending Sections 21.33.050 and 21.33.070 to clarify billing and collection procedures; and amending Section 21.76.040 of the Seattle Municipal Code to revise credits to low-income drainage customers.

WHEREAS, certain definitions used for drainage billing do not accurately reflect current billing policies; and

WHEREAS, drainage rates were last increased on January 1, 2012, as authorized by Ordinance 123449 to pass through increased King County treatment charges; and

WHEREAS, Seattle Public Utilities (SPU) has identified additional infrastructure needs requiring additional capital funding; and

WHEREAS, SPU has completed a rate study showing that existing drainage rates will not provide sufficient revenues to pay the costs of providing drainage services and debt service and that rate increases therefore are required; and proposing certain undeveloped areas be exempt from drainage fees; and

WHEREAS, billing and collection procedures have been updated; and

WHEREAS, credits for qualified low-income customers need to be revised to reflect an increase in drainage rates; NOW THEREFORE,

BE IT ORDAINED BY THE CITY OF SEATTLE AS FOLLOWS:

Section 1. Definitions in Subsections E, I, M, Q, and UAA of Section 21.33.010 of the Seattle Municipal Code are amended and a new definition is added as Subsection T as follows:

SMC 21.33.010 Definitions

For purposes of this chapter, the words or phrases below shall have the

following meanings:

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E. "Condominiums" or "townhouses" means properties which contain (( more than ))two (( (2) )) or more residential dwelling units which are individually owned and are billed separately for property taxes.

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I. "General service properties or parcels" means properties or parcels with no existing single family or duplex dwelling unit, including vacant properties, condominium complexes, (( townhouses, )) apartment buildings, and institutional, commercial or industrial properties.

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M. "Large residential property or parcel" means any single family residential property or townhouse whose billable area is 10,000 square feet or greater.

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Q. "Property owner of record", also referred to as "owner" or "property owner", shall be the person or persons recorded by the King County Assessor to be the owner(s) of property and to whom property tax statements are directed.

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T. "Riparian corridors" are the riparian watercourse and riparian management area as defined in SMC 25.09.020.D.5.a.

(( T )) U . "Single-family residential property or parcel" means any property or parcel which contains one (1) or two (2) residential dwelling units, (( excluding )) including townhouses(( which are considered general service properties or parcels )).

(( U )) V . "Small residential property or parcel" means any single family residential property or townhouse whose billable area is less than 10,000 square feet.

(( V )) W . "Stormwater facility credit" means a percentage credit, up to the allowable maximum, in accordance with Section 33.040 of this Chapter, which reduces the drainage service charge for a particular parcel because one or more approved stormwater management facilities are installed and maintained on the parcel that relieve some of the burden on the City's stormwater system.

(( W )) X . "Stormwater performance goals" mean minimum requirements for flow control and treatment as appropriate for the drainage discharge point and thresholds as more particularly described in the Stormwater Code Chapters 22.800 through 22.808.

(( X )) Y . "Stormwater system" means the entire system of flood protection and stormwater drainage and surface water runoff facilities owned or leased by the City or over which the City has right of use for the movement and control of storm drainage and surface water runoff, including both naturally occurring and man-made facilities.

(( Y )) Z . "Submerged" means that portion of a parcel that extends beyond the shoreline, as delineated by (( the City's )) Geographic Information System (GIS).

(( Z )) AA . "Utility" means Seattle Public Utilities.

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Section 2. Section 21.33.030 of the Seattle Municipal Code is amended as follows:

SMC 21.33.030 Drainage service charges and drainage rates --

Schedule -Exemptions.

A. A drainage service charge is imposed on every parcel within the City, and the owner(s) thereof, except for the following exempted property(ies):

1. The portion of a parcel that contains (( H )) h ouseboats (( and )) or piers that extend beyond the shoreline, as delineated by Geographic Information Systems (GIS) data ;

2. That portion of a parcel that is submerged. If the parcel is entirely submerged, the entire parcel is exempt. If a portion of the parcel is submerged, only the submerged part will be exempt and the remainder of the parcel shall be billed as all other properties;

3. City streets;

4. State of Washington highways, so long as the State of Washington shall agree to maintain, construct and improve all drainage facilities associated with State highways as required by the Utility in conformance with all Utility standards for maintenance, construction and improvement hereafter established by the Utility and so far as such maintenance, construction and improvements shall be achieved at no cost to the Utility or to the City; and

5. All other streets, so long as such streets provide drainage services in the same manner as City streets and the owner(s) shall agree to maintain, construct and improve all drainage facilities associated with such streets as required by the Utility in conformance with all Utility standards for maintenance, construction and improvement hereafter established by the Utility and so far as such maintenance, construction and improvements shall be achieved at no cost to the Utility or to the City.

6. Effective January 1, 2013, that portion of a parcel containing a riparian corridor that contains highly infiltrative pervious surface and meeting all qualification critera established by the Utility by Director's Rule under Section 3.32.020 of the Seattle Municipal Code. The Utility may consider Geographic Information System data and any other information determined necessary in identifying qualifying riparian corridors.

7. Effective January 1, 2013, that portion of a parcel containing an island that contains highly infiltrative pervious surface and less than ten percent impervious surface area. The Utility may consider Geographic Information System data and any other information determined necessary in identifying qualifying islands.

8. Effective upon the date set by Directors Rule, but no later than January 1, 2014, that portion of a parcel containing a wetland that contains highly infiltrative pervious surface and meets all qualification criteria as established by the Utility by Director's Rule under Section 3.32.020 of the Seattle Municipal Code. The Utility may consider Geographic Information System data and any other necessary information in identifying qualifying wetlands.

B. The drainage service charge shall be based upon a parcel's estimated contribution to City-wide surface and storm water runoff. A parcel's run-off is estimated based on its size and surface characteristics, including the amount and type of impervious and pervious surface it contains.

C. Drainage service charges shall be determined as follows:

1. Small single-family residential properties shall be assigned to one of four (( (4) )) flat rate categories based on a billable area. Within each category, properties will be charged a uniform annual drainage rate per parcel which is calculated based on an estimated average contribution of surface and storm water runoff for the category. The applicable drainage rate shall equal the drainage service charge.

2. General service and large residential properties shall be assigned to a rate category based on the estimated percent of impervious surface contained within the parcel. Subsequently, properties assigned to the "undeveloped," "light," and "moderate" rate categories that also contain sufficient quantities of highly infiltrative pervious surface cover to meet Utility-defined performance requirements shall be assigned to a "low impact" rate category. A separate drainage rate shall apply to each general service and large residential rate category. The drainage service charge shall be calculated by multiplying the drainage rate, as determined by the parcel's rate category assignment, by the parcel's billable area (rounded to the nearest whole number of a square foot and divided by one thousand). For condominiums, the drainage service charge shall be determined for the entire parcel and then divided evenly among the owners. Present use code, site visits, planimetric maps based on aerial photography, and other information shall be used to estimate the percentage of impervious area.

D. Drainage rates used in the calculation of drainage service charges shall be the sum of the treatment rate and the system rate, as follows:

1. Treatment rate: The "treatment rate" shall be the rate required to pay the drainage share of "treatment cost" which is the cost of wastewater treatment, interception and disposal service, and any associated costs necessary to meet Drainage and Wastewater Fund policies. The treatment rate shall be the amount obtained when (a) the projected drainage treatment cost for each rate category is divided by (b) the projected number of billing units in each rate category and the result is multiplied by (( one hundred eighteen percent ( ))118(( %) )) percent to cover the costs of taxes , low income rate assistance and other allowances. The projected treatment cost shall be the treatment cost anticipated for the upcoming calendar year, which may include an adjustment to reflect the difference, whether positive or negative, between the drainage share of expected total treatment cost for the current year and the total drainage service charge revenues attributable to the treatment rate expected for the current year. The treatment rate is designed to pass through cost changes driven by King County and may be adjusted by ordinance at any time in response to such charges.

2. System rate: The "system rate" shall be the rate required to fund the expense associated with operating, maintaining, and constructing the City's surface and stormwater management system, including any share of combined sanitary and stormwater system expense assigned to drainage.

3. The rate categories and the corresponding annual drainage rates are as follows:

(( Effective January 1, 2010:

Effective January 1, 2011:

Effective January 1, 2012:

Effective January 1, 2013

Effective January 1, 2014

Effective January 1, 2015

4. SPU shall provide a 10(( % )) percent reduction in the drainage service charge for parcels containing new or remodeled commercial buildings that, after July 27, 2003, install and utilize rainwater harvesting systems that meet the performance requirement that the systems are sized to use the amount of rain that falls on the roofs of such buildings during a one year, 24-hour storm event. A system that involves indoor uses of rainwater must be permitted by Seattle-King County Department of Health to qualify for the rate reduction. A system that relies solely on the capture and indoor use of rainwater shall qualify for the drainage service charge reduction only if the system is sized to meet the performance requirement stated above. Qualifying for the drainage service charge reduction does not relieve the property owner from the obligation to comply with applicable stormwater and drainage code requirements for the buildings and site.

5. Open space properties or parcels shall be charged only for the area of impervious surface and at the rate under which the parcel is classified using the total parcel acreage.

E. Each bill shall be rounded to the nearest cent. The minimum annual drainage service charge shall be (( Five Dollars ( ))$5(( ) )) per parcel.

Section 3. Section 21.33.050 of the Seattle Municipal Code is amended as follows:

SMC 21.33.050

Drainage service charges - Adjustments.

A. Any person receiving a drainage service charge may apply in writing to the Utility for a bill adjustment. Filing such a request does not extend the period for payment of the charge. Requests for adjustments on delinquent accounts will not be acted upon until paid in full.

B. A request for a bill adjustment may be based on one (( (1) )) or more of the following:

1. The billable area of the parcel is incorrect;

2. The percent of impervious surface on a large residential or general service parcel places the parcel in a different rate category than the category assigned by the Utility;

3. The parcel is a large residential or general service parcel which contains highly infiltrative pervious surface and meets all Utility requirements for low-impact rate category designation but has not been properly assigned to such a category by the Utility;

4. The parcel meets the definition of exempted property;

5. The parcel is wholly or partially outside City of Seattle limits; or

6. The parcel's stormwater facility credit was calculated with inaccurate data related to the parcel or to the approved stormwater management facility.

7. The drainage service charge is otherwise erroneous in applying the terms of this chapter.

C. Applications for adjustments may be made to the Utility. The burden of proof shall be on the applicant to show that the (( rate )) adjustment sought should be granted. All decisions of the Utility shall be final.

D. Applications for (( rate )) adjustment must be filed within (( one (1) year )) 90 days of the billing date(( . To receive credit in the current billing year, however, applications for rate adjustment must be made no more than ninety (90) days after the billing date )), except for the low-income credit, which shall be administered as defined in Seattle Municipal Code Section 21.76.030. Applications received after (( ninety ( ))90(( ) )) days of the billing date shall be effective for subsequent years only.

E. If the Utility grants an adjustment which reduces the charge for the current year, the applicant shall receive an adjusted bill or be refunded the amount overpaid. If the Utility determines that an adjustment should be made which increases the charge due for the current year, the applicant shall receive a supplemental bill that will be due within (( forty-five ( ))45(( ) )) days of the date of issue. Applicants for rate adjustments shall be notified in writing of the Utility's decision.

Section 4. Subsection 21.33.070.B of the Seattle Municipal Code is amended as follows:

SMC 21.33.070 Billing and Collection Procedures

B. The drainage service charge shall be displayed and billed on the annual King County property tax statement for the parcel and shall be mailed to the name and address shown on the real property tax roll at the time annual property bills are prepared. (( Properties not subject to property taxes and not otherwise exempted will receive a separate drainage service charge billing statement. )) The drainage service charge billed on the annual King County property tax statement(( , or separate drainage service charge billing statement, )) shall be net of any stormwater facility credit, that has been approved by December 1st of the calendar year prior to the applicable billing year. Stormwater facility credit applications that are received timely in accordance with Section 21.33.040.B, but not approved until after December 1, will receive credit within the applicable billing year.

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Section 5. Subsection 21.76.040.A.2 of the Seattle Municipal Code is amended as follows:

21.76.040 Low Income Rate Credits.

A. Drainage, Wastewater, and Water. Persons qualified by the Human Services Department as eligible recipients of low income utility credits provided for in Section 21.76.010 (eligible recipients) shall be granted low income billing credits in the following amounts:

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2. Drainage. Eligible recipients residing inside The City of Seattle shall receive the following credits for drainage services based on dwelling type:

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Section 6. The provisions of this ordinance are declared to be separate and severable. If a court of competent jurisdiction, all appeals having been exhausted or all appeal periods having run, finds any provision of this ordinance to be invalid or unenforceable as to any person or circumstance, then such provision or provisions shall be null and severed from the rest of this

ordinance with respect to the particular person or circumstance. The offending provision with respect to all other persons and all other circumstances, as well as all other provisions of this ordinance, shall remain valid and enforceable.

Section 7. This ordinance shall take effect and be in force 30 days from and after its approval by the Mayor, but if not approved and returned by the Mayor within ten days after presentation, it shall take effect as provided by Seattle Municipal Code Section 1.04.020.

Passed by the City Council the ____ day of _________, 2012, and signed by me in open session in authentication of its passage this _____ day of __________, 2012.

_________________________________

President __________of the City Council

Approved by me this ____ day of _________, 2012.

_________________________________

Michael McGinn, Mayor

Filed by me this ____ day of _________, 2012.

____________________________________

Monica Martinez Simmons, City Clerk

(Seal)

Maria Coe SPU Drainage Rates ORD 10-26-12 Version #4