ANALYSIS:
A stormwater management fee was contemplated as part of the drainage connection permit provided to commercial properties that are tied into the City’s stormwater system. Currently, this fee has not been established. However, the runoff shed by these properties flows into the City’s system which results in costs to the City’s stormwater enterprise fund. These costs include operational and maintenance expenses as well as the added capital costs due to capacity constraints.
There are only a few properties that fall into this category. These commercial properties deferred any upfront capital expenses required to retain their stormwater onsite. A dedicated stormwater management fee would offset the costs incurred by the City for these commercial properties.
City staff recommended referring this item to the Finance and Citywide Projects Committee for concurrence in developing a commercial property stormwater connection and usage fee that accurately captures the costs associated with these tie-ins.
The City has historically engaged a rate consultant to establish reasonable fees for such purpose and is prepared to move in that direction.