Ordinance 8.07

ORDINANCE 8.07

VILLAGE OF HOLMEN

AN ORDINANCE CREATING THE STORMWATER UTILITY

WHEREAS, the Village Board finds that the management of stormwater and other surface water discharges within and beyond its borders is a matter that affects the public health, safety and welfare of the Village, its residents and businesses and others in the surrounding area; and

WHEREAS, the failure to effectively manage stormwater adversely affects the sanitary sewer utility operations of the Village by, among other things, increasing the likelihood of infiltration and inflow into the sanitary sewer system, and

WHEREAS, surface water runoff may cause the erosion of lands, threaten businesses and residences with water damage and create environmental damage to the rivers, streams and other bodies of water within and adjacent to the Village; and

WHEREAS, a system for the collection and disposal of stormwater provides service and benefits to all properties within the Village and surrounding areas, including those properties not presently served by the system; and

WHEREAS, the Village Board has determined that the cost of operating and maintaining the Village stormwater management system, ensuring regulatory compliance, and financing necessary plans, studies, repairs, replacements, improvements and extension thereof should, to the extent practicable, be allocated in relationship to the services provided by, and benefits received from, the system; and

WHEREAS, the Village Board finds that the present system of financing stormwater management functions and facilities though general tax levies allocates the costs based on the value and taxability of property without any direct relationship to the impact such properties have on the cost of stormwater management; and

WHEREAS, the Village Board finds that financing federal and state unfunded mandates, construction and operation of stormwater management facilities and other functions connected therewith through a stormwater utility will allow for more equitable allocation of such costs and correlation of the charges to the demands placed on the stormwater management system by each property;

NOW, THEREFORE, the Village of Holmen, Wisconsin, does ordain as follows:

Section. 1. Chapter ___ is hereby created as part of the Village of Holmen Municipal Code of Ordinances to read as follows:

CHAPTER ____

VILLAGE OF HOLMEN

STORMWATER UTILITY

X.x0 Stormwater Utility Established. The Holmen Stormwater Utility is hereby established as a separate utility of the Village to operate and maintain the stormwater management facilities and functions of the Village in accordance with the policies and directives of the Village Board and this chapter.

X.x1 Authority. The Stormwater Utility is created pursuant to the authority provided in Chapters 61 and 66 of the Wisconsin Statutes including, without limitation, the authority granted in the following sections: §§61.34, 61.36, 66.0621, 66.0627, 66.0701, 66.0703, 66.0809, 66.0811, 66.0813 and 66.0821.

X.x2 Management and Operations. The operation of the Stormwater Utility shall be under the general supervision of the Public Works Committee and the Village Board. The Public Works Director will oversee and be in charge of the day to day operations of the Utility.

X.x3 Powers and Duties.

(1) Facilities. The Village, through the Stormwater Utility, may acquire, construct, lease, own, operate, maintain, extend, expand, replace, clean, dredge, repair, manage and finance such facilities as are deemed proper and reasonably necessary for a system of storm and surface water management. Such facilities may include, without limitation by enumeration, surface and underground drainage facilities, sewers, watercourses, retaining walls, ponds, basins, streets, roads, ditches and such other facilities as will support a stormwater management system.

(2) Rates and Charges. The Village Board shall annually establish such rates and charges as are necessary to finance any necessary property or easement acquisition and the planning, design, construction, maintenance and operation of stormwater management facilities in accordance with the procedures set forth in this chapter for the Stormwater utility. The Village may advance funds or services to the Stormwater Utility from time to time and the Utility shall reimburse the actual amount or value of such advances as determined by the Village Board.

(3) Budgeting Process. The Administrator and the Public Works Director shall prepare an annual budget for the stormwater utility, which shall include all operation, maintenance and capital costs, debt service and other costs related to the operation of the utility. The costs shall be allocated among the various rate classifications as determined by the Village Board. The budget shall be approved by the Board in accordance with the procedures and requirements of Wis. Stats. §65.90.

(4) Excess Revenues. All stormwater fees collected, and any other revenues appropriated to, or attributable to the operation of, the stormwater utility shall be maintained in a segregated Stormwater Utility Special Revenue Fund. Any excess of revenues over expenditures from stormwater utility operations in a given year shall be maintained in the Special Revenue Fund and shall be used in future years exclusively for purposes consistent with this chapter.

X.x4 Definitions. As used in this chapter, the following terms have the meanings set forth below:

(1) "Director" shall mean the Public Works Director or his or her designee.

(2) "Equivalent Runoff Unit" or "ERU" shall mean the estimated average horizontal measurement of impervious area of a fully developed single family parcel within the Village as determined from time to time by the Village Board. One ERU is determined on the effective date of this chapter to be equivalent to 3550 square feet.

(3) "Impervious Area" or "Impervious Surface" shall mean a horizontal surface, or the horizontal area included in a sloped surface, that is compacted or covered with a layer of material such that it significantly reduces the ability of rainwater or other surface water to penetrate the ground below. The term includes, but is not limited to, semi-impervious surfaces such as compacted gravel or clay, as well as streets, roofs, sidewalks, patios, parking lots, driveways and other similar surfaces. For purposes of this chapter, to include those areas as defined in §56.2 of this code.

(4) "Duplex" shall mean a residential property containing two dwelling units.

(5) "Duplex Unit" shall mean a dwelling unit within a duplex.

(6) "Dwelling Unit" shall mean one or more rooms within a building that are arranged, designed or used as living quarters for one group of individuals living as a single housekeeping unit. For purposes of this chapter, to include those areas as defined in §76.2 of this code.

(7) "Farmstead Home Site" shall mean that portion of any agriculturally zoned property which contains a single family home, duplex unit or multifamily unit, regardless of whether the dwelling unit is on a separate lot or parcel.

(8) "Lot" shall have the meaning defined in §90.3 and §195.9 of this Code.

(9) "Multifamily Property" shall mean a residential building consisting of three or more dwelling units, including those occupied seasonally.

(10) "Multifamily unit" shall mean a dwelling unit within a multifamily property.

(11) "Non-residential Property" shall mean any developed lot or parcel other than residential property as defined herein, and includes, but is not limited to, transient rentals (such as hotels and motels), mobile-home parks, commercial, industrial, institutional, governmental property and parking lots. For purposes of this chapter, to include those areas as defined per §155.7 of this code.

(12) "Residential Property" shall mean any lot, parcel or farmstead home site developed for residential purposes including single family homes, duplex units, multifamily units, but not including transient rentals (such as hotels and motels) and mobile-home parks.

(13) "Single Family Home" shall mean any residential building containing only one single dwelling unit.

(14) "Undeveloped Property" shall mean property that has not been altered by the addition of any improvements such as a building or other structure, paving or the installation of substantial impervious landscaping; A property shall be considered developed pursuant to this chapter, upon issuance of a certificate of occupancy, or upon substantial completion of construction if no such certificate is issued or where construction is at least 50% complete and construction is halted for a period of three (3) months.

(15) “Exempt Property” – All existing Village or publicly owned lands and buildings that will not be charged a fee by the storm water utility, as determined by the Village Board.

X.x5 Rates and Charges.

(1) The rates charged by the Stormwater Utility shall be set annually by the Village Board at sufficient levels to fund the capital, operating and other expenses set forth in the adopted budget which is not funded by other sources of revenue. Service charges so established shall be in addition to any assessments or charges imposed under any other provision of this Code.

(2) A copy of the current rates shall be maintained at all times on file with the Village Clerk and available to the public during normal business hours.

(3) Service charges established by the Village Board may include the following components:

(a) Base Charge (BC). A Base Charge may be charged to each property in the Village based upon its total area determined from annual tax records.

(b). Equivalent Runoff Unit Charge (ERU). The ERU charge shall be the basic service fee charged to each parcel in the Village based upon the amount of impervious area as reasonably determined by the Village Engineer.

(c) Special Charge (SC). A special charge may be imposed on property located in an area specially benefited by a particular stormwater management facility or service. Any special charge will be developed to reflect the benefits and/or services in a particular area which the Board determines cannot equitably be charged to all property throughout the Village.

(d) Connection Charge. A one-time charge may be imposed when a property is converted from undeveloped to developed property or otherwise becomes connected to the Village stormwater management system. The charge shall be set annually by the Village Board, and may vary based on the size of the parcel of property or other factors determined appropriate by the Village Board.

(1) The Village Board may make such other classifications of properties or customers in order to achieve a reasonable and fair allocation of the costs of the Stormwater Utility among the properties benefited.

X.x6 Credits.

(1) Effective July 15, 2008 the Village Board may grant credits against the ERU and SC as provided in this section. The total of all credits may not exceed 50% of the total of all applicable charges, excluding the BC. Parcels being charged 10 ERUs or less are ineligible to apply for credits. Credits may not be issued retroactively.

(2) Any qualifying property owner requesting a credit shall file with the Director by July 15 each year an application therefore on a form provided by the Village, together with a review fee established by the Village Board, identifying the storm water facilities, management practices or services for which the credit is claimed and the financial benefit to the utility. If the Village Engineer determines that additional engineering analysis is necessary to properly complete his or her review and to make an appropriate recommendation thereon, the Village may deny the application unless the applicant agrees to pay the cost of the necessary engineering services. Approved credits will become effective January 1 of the year following approval by the Village Board.

(3) Credits may be granted under any of the following circumstances:

(a) Any qualifying property owner may seek a credit against the ERU charge where the owner has installed and maintained facilities that result in the detention, retention, or infiltration of stormwater on site and such facilities demonstrably reduce the financial obligations of the stormwater utility above and beyond that minimum required by law. For qualifying SWMU customers a credit up to 50 percent of the utility fee less the BC, could be obtained by detaining storm water. For example, if an on-site detention pond on a newly developed site detains the 100 year storm and releases a peak discharge equal to the 2-year storm during pre-developed site conditions, a 50 percent credit (excluding the BC) would be possible. The table below defines possible credits for qualifying properties.

Table 3

Storm Size (years) Credit

0-5 0-10%

10 20%

25 30%

50 40%

100 50%

(b) Any qualifying property owner may seek a credit against the ERU charge for that portion of the property that does not drain into any stormwater conveyance or facility operated or maintained by the stormwater utility in an amount above and beyond that minimum required by law.

(c) Any qualifying property owner may seek a credit against the SC charge if stormwater from the property does not drain into any stormwater conveyance or facility that is the subject of the special charge in an amount above and beyond that minimum required by law.

(4) The Village Engineer shall evaluate the quantifiable benefits in both quantity and quality management measures in reviewing requests for credits, where applicable. In all cases, the Village Engineer shall submit a written recommendation to the Village Board as to whether a request for credit should be granted, denied, or granted in part and denied in part. The written recommendation shall also set forth the reason or reasons for such recommendation.

(5) Credit applications shall be decided by the Village Board and shall be either one-time credits or may be continuing credits against recurring charges as determined appropriate based on the recommendation of the Village Engineer. The Village Engineer shall recommend a credit under sub. (3)(a) Only if he/she finds all of the following:

(a) If the credit is based on special facilities or management practices under sub. (3)(a):

1. The facilities installed or practices undertaken will reduce the expenses incurred by the utility by limiting the quantity and/or improving the quality of discharges into the facilities of the utility from the property in an amount above and beyond that minimum required by law;

2. The qualifying property owner has, by contract, deed restriction or other method approved by the Village Engineer, ensured that the Village may legally enforce any operational or maintenance programs necessary to assure that the facilities or practices will continue to provide the benefits on which the credit is based;

3. The investment of the qualifying property owner in the facilities or management practices exceeded the investment that would otherwise be necessary in order to comply with any other Village ordinance, State or Federal regulations or to obtain any land division or development approval from the Village;

4. The investment of the qualifying property owner in such facilities or management practices is disproportionate to the investment made by the average property owner subject to the same normal charges such that it would be inequitable to charge the applicant on the same basis; and

5. The amount of the credit does not exceed the cost savings to the utility from the facilities and management practices maintained by the qualifying applicant up to 50% of the utility fees less the BC.

(b) If the credit is based on sub. (3)(b) or (c):

1. That the absence of drainage from the property or a portion thereof into the facilities of the Utility results in financial savings to the Utility.

2. Adequate assurances are provided that the area of the property for which the credit is given will not be altered in such a way as to allow drainage into the facilities operated by the Utility.

3. The drainage from the property is managed in a way which complies with all Village ordinances and does not cause a nuisance condition.

4. The amount of the credit does not exceed the cost savings to the utility determined under subpar. 1.

(6) The Utility may revoke the credit in any case where, based on the opinion of the Village Engineer, the circumstances forming the basis for the credit have materially changed. The Utility shall provide at least 30 days advance written notice of any proposed credit revocation.

(7) A denial or revocation of any credit may be appealed under Section X.X9.

X.x7 Customer Classifications.

(1) For purposes of imposing the ERU charges, all lots and parcels within the Village shall be classified into the following six (6) customer classes:

(a) Residential – Single Family

(b) Residential – Duplex

(d) Non-residential

(e) Undeveloped

(f) Exempt

(2) The Village Engineer shall prepare a list of properties within the Village and assign a customer classification to each lot or parcel.

(3) ERU’s shall be calculated for each property classification as follows:

(a) Residential – Single Family 1 ERU.

(b) Residential – Duplex: 2 ERU.

(d) For non-residential parcels the Village Engineer shall be responsible for determining the impervious area from available information, including, but not limited to, data supplied by the Village Assessor, the property owner, tenant or developer, aerial photography, or by actual on site measurement. The Village Engineer may require additional information from the property owner as necessary to make the determination. The ERU value for a non-residential property shall be determined by dividing its impervious area by the number of square feet per ERU and rounding the quotient to the next higher .1 ERU. The minimum ERU charge to non-residential properties will be 1 ERU. The billing amount shall be updated by the Utility as necessary based on changes to the amount of impervious area on the property.

(e) Undeveloped Properties - 0 ERU, are subject to the BC.

(f) Exempt - 0 ERU, are not subject to the BC.

X.x8 Billing and Penalties.

(1) Stormwater Utility charges will be billed quarterly with the water utility, sanitary sewer utility and refuse billing. All charges shall be due and payable twenty (20) days after the date of billing.

(2) Billings for applicable charges shall be mailed to the designated property owner. The owner of the property shall be liable for all stormwater utility charges in the event payment is not made as required in this chapter. The owner of any property served which is occupied by tenants shall have the right to examine collection records of the Village to determine whether such charges for such property have been paid at the office of the Utility Billing Clerk during normal business hours.

(3) Any Stormwater Utility charges remaining unpaid more than twenty (20) days from the date of billing shall be deemed delinquent and shall be subject to a 1 ½ % per month (18% APR) late payment charge in addition to all other charges. All delinquent charges shall be collected as provided in Wis. Stats. §§66.0821(4) and 66.0809.

X.x9 Appeals.

(1) Any stormwater utility charge, determination of ERUs, or ERU credits for any individual qualifying property may be appealed by filing a written appeal with the Village Clerk not later than twenty (20) days after the date the payment is due. The appeal shall specify all basis for the appeal and the amount of the stormwater charge the appellant asserts is appropriate. Any appeal not filed within the time permitted by this section shall be deemed waived. As a condition to maintaining an appeal, the appellant shall pay all charges billed under protest prior to filing the appeal.

(2) The Village Engineer shall review the appeal and determine whether the challenged determination is fair and reasonable and consistent with the provisions of this chapter, and whether a refund is due the customer. The Village Engineer shall determine his/her procedure for deciding such appeals which, at a minimum, shall provide the appellant with written notice by regular mail at least 10 days prior to the Public Works Committee meeting at which the appeal will be reviewed, and an opportunity to present evidence and be heard on the appeal at such meeting. The Village Engineer shall provide the appellant with the Committee’s decision in writing within fifteen (15) days after the date of the decision.

(3) The appellant may appeal the decision of the Committee to the Village Board. The appeal must be filed in writing with the Village Clerk within thirty (30) days from the date of the decision. An appeal to the Village Board shall be limited to the evidence presented to the Public Works Committee, but the appellant shall be afforded the opportunity to present arguments based on that evidence.

(4) If the Village Engineer, Public Works Committee or the Board determines that the decision appealed from should be reversed or modified, it shall determine whether a refund is due the customer. Any refund ordered shall be applied as a credit against the customer’s next stormwater billing if the refund will not exceed the customer’s next stormwater billing, and otherwise will be refunded by the Village Treasurer.

X.x0 Special Assessment and Charges.

(1) In addition to any other method for collection of the charges established pursuant to this chapter for Stormwater Utility costs, the Village Board may order that the charges be levied against the property as a special charge pursuant to Wis. Stat. § 66.0627. The mailing of an invoice reflecting the charges due to the owner shall be notice to the owner that failure to pay the charges when due may result in such charges being placed upon the tax roll. A 10% administrative handling fee will be applied.

(2) In addition to any other method of charging for Stormwater Utility expenses, the Village Board may by resolution levy special assessments on property in a limited and determinable area for special benefits conferred upon property by any public improvements pursuant to Wis. Stat. § 66.0703. The failure to pay such special assessments shall result in a lien on the property and shall be enforced pursuant to Wis. Stat. §66.0703(13).

X.x1 Severability.

If any provision of this chapter is found to be invalid or unenforceable for any reason, such determination shall not affect the validity or application of, the remaining provisions. A determination of invalidity or unenforceability of any provision as applied to any specific property or circumstance shall not affect the validity and application of such provisions to any other property or circumstances.

Section 2: This ordinance shall be effective upon its enactment.

Adopted this 8^th day of November, 2007

_____________________________

John W. Chapman, Village President

Attest:

____________________________

Catherine J. Schmit, Village Clerk