G-10-11-23-10B3 - 11/23/2010ORDINANCE NO. c'. (V- U -ZS laa;
AN ORDINANCE AMENDING CHAPTER 44, "CODE OF
ORDINANCES, CITY OF ROUND ROCK, TEXAS, BY ADDING
ARTICLE XI, SECTION 44-330 ET SEQ., ADOPTING TEXAS
LOCAL GOVERNMENT CODE, CHAPTER 552 ENTITLED
"MUNICIPAL UTILITIES," SUBCHAPTER C ENTITLED
"MUNICIPAL DRAINAGE UTILITY SYSTEMS," SECTION
552.041 ET SEQ.; ESTABLISHING A MUNICIPAL DRAINAGE
UTILITY SYSTEM; DECLARING SAID UTILITY SYSTEM TO
BE A PUBLIC UTILITY; PROVIDING A PENALTY CLAUSE;
PROVIDING FOR A SAVINGS CLAUSE AND REPEALING
CONFLICTING ORDINANCES AND RESOLUTIONS
WHEREAS, the City Council of the City of Round Rock, Texas states that, in the
exercise of its governmental authority and in order to promote the public health, safety,
convenience and general welfare, the City has previously operated and maintained a
storm water drainage system that collects and directs storm water runoff; and
WHEREAS, that system, as constructed and developed over a number of years,
heretofore has been operated and maintained through ad valorem taxes, and it is now
necessary and desirable to provide an alternative method of recovering some or all of the
future costs of improving, maintaining and operating the system through the imposition
of charges as provided by this ordinance; and
WHEREAS, it is necessary to ensure that the collection of storm water runoff
and direction of storm water drainage within the City protects the public health and safety
of its citizens from loss of life and property caused by surface water overflows, surface
water stagnation, and pollution arising from nonpoint source runoff within the boundaries
of the established service area; and
WHEREAS, the City Council desires to address various water quality and
environmental issues that may further burden its storm water drainage infrastructure; and
WHEREAS, the City Council desires to adopt Texas Local Government Code,
Chapter 552 entitled "Municipal Utilities," Subchapter C entitled "Municipal Drainage
Utility Systems," Section 552.041 et seq. (the "Act"); and
WHEREAS, the City Council desires to establish a municipal drainage utility
system within an established service area in accordance with the Act; and
O:\wdox\SCClnts\0112\ 1005\MUNICIPAL\00206943.DOC
WHEREAS, the City Council desires to declare, after a public hearing, that the
municipal drainage utility system so established and created under the Act is a public
utility; and
WHEREAS, it is the intent of the City to offer drainage service and fund the
drainage utility system in a manner that reasonably, equitably and in a nondiscriminatory
manner allocates the cost of storm water control and treatment to properties in proportion
to storm water runoff potential for each class of property; and
WHEREAS, the City Council states its reliance on the Act for authorization to
further provide rules for the use, operation, and financing of the system; prescribe bases
on which the system may be funded and fees in support of the system be assessed, levied,
and collected; provide exemptions of certain persons or entities; and prescribe other rules
related to the subject of municipal drainage; Now, Therefore
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ROUND
ROCK, TEXAS:
I.
That Chapter 44, "Code of Ordinances, City of Round Rock, Texas, is hereby
amended by adding an Article XI entitled "Municipal Drainage Utility System," which
shall read as follows:
ARTICLE XI. MUNICIPAL DRAINAGE UTILITY SYSTEM
Sec. 44-330. Adoption of Act as authority to establish utility system.
The City does hereby declare, under Texas Local Government Code, Chapter 552
entitled "Municipal Utilities," Subchapter C entitled "Municipal Drainage Utility
Systems," Section 552.041 et seq. (the "Act"), that said Act is hereby adopted.
Sec. 44-331. Establishment of Municipal Drainage Utility System.
The City does hereby declare, under and in accordance with the Act, that there is
established and created a Municipal Drainage Utility System within an established
service area, herein referred to as the "Drainage Utility".
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Sec. 44-332. Declaration of utility system as public utility.
The City does hereby declare, following statutorily -mandated public hearing, that
the Drainage Utility so established and created under the Act is a public utility.
Sec. 44-333. Incorporation of existing facilities.
Pursuant to the provisions of Section 552.046 of the Act, the City does hereby
incorporate existing drainage facilities, materials, and supplies into the Drainage Utility.
Sec. 44-334. Findings and determinations.
(a) Determination of service area. Pursuant to the provisions of Section
552.044(8) of the Act, the City does hereby determine that the service area of the
Drainage Utility shall be within the City's municipal boundaries.
(b) Finding. It is hereby found, determined, and declared that the City shall
ensure that the cost of operating and maintaining the Drainage Utility, and the financing
of necessary repairs, replacements, improvements, and extension thereof, must be directly
related to storm water drainage service and the terms of the Drainage Utility Charges.
(c) Statutorily -mandated Findings.
(1) Pursuant to the provisions of Section 552.045(b)(1) of the Act, the
City does hereby make the following finding prior to final adoption
of the ordinance establishing this article: the City hereby finds that
it will establish a schedule of drainage charges against all real
property in the proposed service area subject to charges under this
article.
(2) Pursuant to the provisions of Section 552.045(b)(2) of the Act, the
City does hereby make the following finding prior to final adoption
of the ordinance establishing this article: the City hereby finds that
it will provide drainage for all real property in the proposed service
area on payment of drainage charges, except real property
exempted under this article.
(3)
Pursuant to the provisions of Section 552.045(b)(3) of the Act, the
City does hereby make the following finding prior to final adoption
of the ordinance establishing this article: the City hereby finds that
it will offer drainage service on nondiscriminatory, reasonable, and
equitable terms.
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Sec. 44-335. Applicability.
This ordinance shall be applicable to any owner or user of a benefitted property,
within the utility service area, to which storm water drainage service is provided either
directly or indirectly.
Sec. 44-336. Definitions.
For the purposes of this article, the following words, terms and phrases shall have
the meaning ascribed to them in this section except where the context clearly indicates a
different meaning. Whenever any words, terms and phrases used herein are not defined
herein but are defined in the federal and state laws regulating the subject matter hereof,
any such definition therein shall be deemed to apply to such words, terms and phrases
used herein, except when the context otherwise requires:
Act means Texas Local Government Code, Chapter 552 entitled "Municipal
Utilities," Subchapter C entitled "Municipal Drainage Utility Systems," Section 552.041
et seq., as amended.
Allocated portion of a parcel means the part of a parcel that has been assigned to
an owner or customer based on the portion used by the owner or customer as compared to
the parcel's total area.
Benefitted property means an improved parcel, lot or tract within the utility
service area to which storm water drainage service is made available under this article.
All real property within the utility service area directly or indirectly receives storm water
drainage service.
Chief of Public Works Operations means the City's Chief of Public Works
Operations or his/her designee responsible for the administration and enforcement of this
article.
Customer means the person(s) or entity(ies) recorded as the customer or user of
water and/or wastewater utility services for a parcel, based on the records of the City or
its contracted utility billing systems.
Drainage Utility Charges means the fees and/or rates established by ordinance
that are levied against the owner or customer of a benefitted property for storm water
drainage services provided by the Drainage Utility, including but not limited to the items
described in the definition of "cost -of -service" in the Act.
Equivalent residential unit (ERU) means a unit of measurement of impervious
surface area calculated for the average singe family residential property within the utility
service area, as measured in square feet (SF), including the residential structure, garage,
driveway, sidewalk, patio, out buildings, and any other impervious surface.
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Impervious surface means a surface that has been compacted or covered with a
layer of material so that it is resistant to penetration by water and does not have a
vegetative cover. An impervious surface includes but is not limited to compacted soil
with a surface treatment, gravel, crushed stone surface or soil compacted by vehicle
traffic, asphalt or concrete pavement, a parking lot, a driveway, a sidewalk or private
roadway, a building or artificial structure, or any surface that changes the natural
landscape and increases, concentrates, pollutes, or otherwise alters the flow or amount of
storm water runoff.
Impervious area means a measurement in square feet (SF) of impervious surface
on which the amount of storm water runoff potential for a benefitted property within a
customer class is estimated.
Improved parcel means a parcel, lot, or tract or portion of lot or tract that has been
changed from its natural state by addition of a building, facility, structure or other
improvement on all or a portion of the parcel, which creates an impervious surface.
Municipal Drainage Utility System or Drainage Utility means the storm water
drainage utility system owned or controlled, in whole or in part, by the City, including the
City's existing storm water facilities, materials, and supplies and any storm water
facilities, materials, and supplies hereafter constructed or utilized, and dedicated to the
service of benefitted property, and including provision for additions to the system.
Non-residential property means an improved parcel that is not a residential
property, including commercial, industrial, institutional, and governmental uses, a
condominium or apartment consisting of five (5) or more residential units, a
homeowners' association, or other similar uses or properties.
Owner means the person(s) or entity(ies) listed as the owner of a parcel in the
Williamson County Appraisal District's records, the Travis Central Appraisal District's
records, or the City's records.
Residential property means an improved parcel upon which four (4) or fewer
residential units are constructed.
Residential unit means any building or portion thereof that contains living
facilities, including provisions for sleeping, eating, cooking and sanitation, as required by
applicable City codes, for not more than one family. A residential unit may be a single-
family house, a town home, a condominium, a manufactured home, or a portion of a
duplex, triplex or quadplex.
Service area means the geographic area within the incorporated limits of the City.
Storm water infrastructure means the property (real, personal or mixed) that is
used in providing storm water capacity to manage and control storm water runoff for the
storm water drainage system, including bridges, catch basins, channels, conduits, creeks,
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culverts, detention ponds, retention ponds, ditches, draws, creeks, flumes, pipes, pumps,
sloughs, treatment works, and appurtenances to those items, whether natural or artificial,
or using force or gravity, that are used to draw off surface water from land, carry the
storm water runoff away, collect, store, or treat the storm water runoff, or divert the storm
water runoff into natural or artificial watercourses.
Storm water drainage operations and maintenance expenditure means an
expenditure required to finance, operate and maintain storm water drainage infrastructure,
including debt service, equipment, personnel, educational and administrative
expenditures.
Storm water runoffpotential means the relative potential for causing storm water
runoff quantities, qualities, or velocities from an improved parcel based on the type of
development or land use on the parcel and the size of the parcel.
Wholly sufficient and privately owned storm water drainage system means land
and facilities owned and operated by a person or entity other than the City and from
which storm water does not discharge, under any storm frequency event or conditions,
into a creek, river, slough, culvert, channel or other infrastructure that is part of the City's
storm water drainage system.
Sec. 44-337. Administration.
(a) Duty of Chief of Public Works Operations. The Chief of Public Works
Operations shall administer the Drainage Utility. The Chief shall maintain an accurate
record of all properties benefitted or served by the Drainage Utility and the Drainage
Utility Charges levied for each parcel or portion of a parcel. The record may be
maintained within the City's utility billing system or in another recordkeeping system
that may be developed.
(b) Program implementation. By the adoption of the ordinance establishing
this Article, the City makes no representation that all storm water problems may or will
be remedied, and the City Council retains full discretion in establishing the priorities in
expending funds as they become available to meet the City's storm water drainage needs.
The adoption of the ordinance establishing this Article shall not be construed to relieve
private land owners, developers or other individuals or entities from providing storm
water drainage improvements required by this Code of Ordinances, and federal or state
laws and regulations.
(c) Access to benefitted properties. City employees shall, at all reasonable
times, have access to a benefitted property within the utility service area to inspect,
maintain, repair, or enforce this ordinance, or state laws or regulations.
(d) Governmental immunity. The City does not waive any immunity granted
to it under any law.
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Sec. 44-338. Establishment of Drainage Utility Charges; Rate Classes.
(a) Drainage Utility Charges are hereby established, and the charges shall be
imposed on each benefitted property within the utility service area for storm water
drainage services and storm water drainage facilities provided by the storm water
drainage system.
(b) A benefitted property within the utility service area shall be classified and
charged Drainage Utility Charges based on the storm water drainage utility rate
determined by the property's rate class. Depending on the use of the benefitted property,
the property shall be classified as one of the following two rate classes: (i) residential
property; or (ii) non-residential property.
Sec. 44-339. Revision of rates.
The City Council shall establish the initial Drainage Utility Charges via ordinance
pursuant to the provisions of the Act. The City Council reserves the right to review the
Drainage Utility Charges at any time and may, by ordinance, increase or decrease the
Drainage Utility Charges within the schedule upon a determination that the increase or
decrease is warranted.
Sec. 44-340. Delinquent charges; non-payment.
Any charge due hereunder which is not paid when due may be recovered in an
action at law by the City, together with maximum interest, attorneys' fees and other costs
and fees if allowable under state or federal law. In addition to any other remedies or
penalties provided by state or federal law or by the ordinance establishing this article, a
customer's failure to pay the Drainage Utility Charges promptly when due shall subject
the customer to discontinuance of any or all municipal utility services, including without
limitation, water, wastewater, and garbage collection services.
Sec. 44-341. Calculation of rates and fees.
(a) Rates in accordance with the Act. The Drainage Utility Charges shall be
established in accordance with the provisions of the Act.
(b) Fee calculation. The Drainage Utility Charges shall be based on an
inventory of improved parcels within the service area. The inventory shall evaluate the
storm water runoff potential for improved parcels within the service area and establish a
rate for each class of benefitted properties. If authorized by the City Council, the Chief
may levy an amount to establish one or more funds to finance future storm water
drainage system construction and to improve storm water quality. The storm water
runoff potential for each class shall be equitably and proportionately distributed between
classes and among the parcels within each class of benefitted properties relative to the
contribution of each class to storm water runoff. The Drainage Utility Charges shall be
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set according to the requirements of Section 44-334 herein related to findings and
determinations.
(c) Storm water runoff potential. For purposes of establishing the storm water
runoff potential for each class of benefitted properties and between classes of benefitted
properties, the Chief shall calculate the impervious area for parcels within the service
area based on data gathered from the Williamson Central Appraisal District, the Travis
Central Appraisal District, Geographic Information System records, and aerial
photography and site plans or plats available. The Chief shall then determine the relative
storm water runoff potential for each rate class and among parcels within each rate class.
The rate for each class of benefitted properties and for parcels within each class shall be
based on the impervious area measured in square feet (SF).
(d) Property values. In calculating the Drainage Utility Charges, the Chief
shall be prohibited from using property values.
Sec. 44-342. Establishment of the Drainage Utility fund.
(a) Drainage Utility System fund. A Drainage Utility fund is established and
may consist of one or more accounts. All Drainage Utility Charges shall be deposited as
collected and received into this fund, and shall be used exclusively for storm water
drainage services as provided in the Act, including but not limited to the following:
(1) The cost of the acquisition of land, rights-of-way, options to
purchase land, easements, and interests in land relating to
structures, equipment, and facilities used in draining the benefitted
property;
(2) The cost of the acquisition, construction, repair, and maintenance
of structures, equipment, and facilities used in draining the
benefitted property;
The cost of architectural, engineering, legal, and related services,
plans and specifications, studies, surveys, estimates of cost and of
revenue, and all other expenses necessary or incident to planning,
designing, providing, or determining the feasibility and capability
of structures, equipment, and facilities used in draining the
benefitted property;
(4) The cost of all machinery, equipment, furniture, and facilities
necessary or incident to the provision and operation of draining the
benefitted property;
The prorated cost of funding and financing charges and interest
arising from construction projects and the start-up cost of a storm
water drainage facility used in draining the benefitted property;
(6) The prorated cost of debt service and reserve requirements for
funding of storm water drainage infrastructure, equipment and
(3)
(5)
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(b)
(7)
facilities paid with revenue bonds or other securities or obligations
issued by the City and supported by pledge of storm water
revenues, including any fees and expenses incidental thereto;
To the extent permitted by law, the cost of constructing, sampling,
monitoring, building, inspecting and maintaining structures needed
for the state's regulation and permitting requirements imposed on
the City for providing storm water quality improvements for the
benefitted property; and
(8) The administrative costs of the Drainage Utility.
Drainage Utility fund accounting.
(1)
The City shall clearly account for revenues and expenditures
authorized for operation of the Drainage Utility.
(2) The revenues collected from the Drainage Utility Charges shall be
segregated and completely identifiable from other City funds and
accounts.
(3)
Funds and revenues in the Drainage Utility fund may be
transferred to the City's general fund as allowed by law.
(c) Drainage Utility service deposit. A deposit shall not be imposed for
initiation or continuation of storm water drainage utility service.
Sec. 44-343. Exemptions.
(a) Pursuant to §580.003(a), Texas Local Government Code, a state agency,
and a public or private institution of higher education shall be exempt from payment of
the fees charged for the development or maintenance of programs or facilities for the
control of excess water or storm water:
(b) Pursuant to §552.053(b), Texas Local Government Code, the following
are exempt from the provisions of this Article:
(1) The State of Texas;
(2) Williamson County;
(3). Travis County;
(4) The City of Round Rock;
(5) The Round Rock Independent School District; and
(6) Other independent school districts located within the corporate city
limits.
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(c) Private property exemption. Any property to which a mandatory
exemption under Section 552.053 of the Act applies is exempt from the ordinance
establishing this article, including without limitation:
(1) Property with proper construction and maintenance of a wholly
sufficient and privately owned storm water drainage system that
does not discharge under any storm frequency event or conditions
to waterways controlled or maintained by the City;
(2) Property held and maintained in its natural state, until such time
that the property is developed and all of the public infrastructure
constructed has been accepted by the City for maintenance; and
A subdivided parcel or lot, until a structure has been built on the
lot and a certificate of occupancy has been issued, or the City has
taken another official action to release the property for occupancy.
(d) Proof of Exemption. If the owner of property asserts that such property is
exempt pursuant to the ordinance establishing this article or any other applicable law,
such property owner has the burden to assert such exemption by filing notice of eligibility
for such exemption and sufficient evidence of entitlement to such exemption with the
Chief of Public Works Operations. If the exemption is not granted, the decision may be
appealed to the City Council.
(3)
II.
PENALTY FOR VIOLATION
Any person, firm or corporation who violates, disobeys, omits, neglects or refuses
to comply with, or who resists the enforcement of any of the provisions of the ordinance
establishing this article, shall be fined no more than Two Thousand Dollars ($2,000.00)
for each violation, and in addition shall pay all costs and expenses involved in the case.
Each day a violation occurs is a separate offense. Nothing herein contained shall prevent
the City from taking such other lawful action as is necessary to prevent or remedy any
violation.
A. All ordinances, parts of ordinances, or resolutions in conflict herewith are
expressly repealed.
B. The invalidity of any section or provision of this ordinance shall not
invalidate other sections or provisions thereof.
C. The City Council hereby finds and declares that written notice of the date,
hour, place and subject of the meeting at which this ordinance was adopted was posted
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and that such meeting was open to the public as required by law at all times during which
this ordinance and the subject matter hereof were discussed, considered and formally
acted upon, all as required by the Open Meetings Act, Chapter 551, Texas Government
Code, as amended.
READ and APPROVED on first reading this the 49- day of
OIi•t1'v1 ' , 2010.
READ, APPROVED and ADOPTED on second reading this the Ziel
t — day of
MOY , 2010.
ATTEST:
SARA L. WHITE, City Secretary
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ALAN McGRAW, Mayor
City of Round Rock, Texas
ROUND ROCK, TEXAS
PURPOSE. PASSION. PROSPERITY
Agenda Item No. *1063.
City Council Agenda Summary Sheet
Consider an ordinance amending Chapter 44, Code of Ordinances, to add Section 44-330
Agenda Caption: establishing a Municipal Drainage Utility System. (Second Reading)
Meeting Date: November 23, 2010
Department: Infrastructure Development and Construction Management
Staff Person making presentation: Alysha Girard
Assistant City Engineer
Item Summary:
The City is facing increasing demands for effectively managing storm water runoff due to development and
compliance with federal and state regulations. Our drainage system requires consistent funding to ensure regulatory
compliance, environmental reservation and — most importantly — protection of life and property from flood damage.
A Drainage Utility — where residents and businesses pay a monthly fee to fund the system — is a recognized best
practice throughout the country and used by more than 60 Texas cities. Currently, the drainage system is the only
infrastructure system without a dedicated funding source for repairs and capital improvements. As the demand and
subsequent expenses of providing storm water drainage services continue to rise due to growth and compliance
with state and federal regulations, it is more important than ever to ensure a fair and equitable distribution of costs.
A Drainage Utility meets the Community's financial objectives in two important ways. First, it aligns with our
adopted financial policy which has a primary objective to reduce General Fund reliance on volatile sales tax revenue
to fund basic services. Second, it aligns with our citizens' preference for user -fee-based program funding, where
service costs are paid for by those who use and benefit the most.
On September 23, Council adopted the City's Operating Budget that anticipated the creation of the Drainage Utility.
The 2010-2011 budget established a fund and allocated the current expenditures associated with operating and
maintaining the storm water program — just over $1.6 million.
Strategic Plan Relevance:
Public Health and Safety Strategic Initiative— Priority Goal: Provide for effective management of Storm Water.
Cost:
Source of Funds:
N/A
N/A
Date of Public Hearing (if required): October 28, 2010
Recommended Action: Approval