Chapter 8.12
SURFACE WATER UTILITY

Sections:

8.12.010  Authority – Title – Purpose.

8.12.020  Revenue fund created.

8.12.030  Applicability.

8.12.040  Definitions.

8.12.050  Rates and service charges.

8.12.060  Billing and billing procedures.

8.12.070  Rate adjustments and appeals.

8.12.080  Use of funds.

8.12.090  Lien for delinquent charges – Enforcement.

Legislative history: Ord. 99-474.

8.12.010 Authority – Title – Purpose.

This chapter is adopted under the authority of Chapter 35.67 RCW, and shall be known as the Mill Creek surface water utility (hereinafter "utility"). The purpose of the utility and this chapter is to establish a permanent funding source to provide the revenue needed to adopt and implement a surface water management program (hereinafter "program") in the city. (Ord. 2001-534 § 1)

8.12.020 Revenue fund created.

There is hereby created an enterprise fund known as the Mill Creek surface water fund (hereinafter "fund"). All fees and charges imposed by the utility and this chapter shall be placed in said fund for the purpose of paying all or any part of the costs and expenses related to (A) the adoption and administration of the program, (B) the acquisition, installation, addition, improvement, replacement, repair, modification, maintenance and operation of surface water facilities under the program, and (C) enforcement activities arising under the program. (Ord. 2001-534 § 1)

8.12.030 Applicability.

This chapter shall apply to all real property in the city, including public and private property, unless specifically exempted therefrom. (Ord. 2001-534 § 1)

8.12.040 Definitions.

The following words and phrases shall have the following meanings unless the context clearly indicates otherwise:

A. "City" shall mean the city of Mill Creek, Washington, or, as indicated by the context, may mean the department of public works, the public works director, city engineer or other official, officer, employee or agency representing the city in the discharge of his or her duties.

B. "City road" shall mean every public right-of-way, excluding state roads, in the city.

C. "Commercial use parcel" shall mean every parcel in the city on which commercial activity is conducted, and as may be defined in the city’s land use and development codes.

D. "Condominium" shall mean every residential structure containing residential condominium units falling under the provisions of Chapters 64.32 and 64.34 RCW, other than residential units defined as townhouse units under this chapter.

E. "Director" shall mean the public works director, city engineer, or his or her designee.

F. "Duplex" shall mean every residential structure accommodating two attached residential dwelling units as defined by the city’s land use and development codes.

G. "Equivalent service unit" or "ESU" shall mean the unit of measurement by which utility rates under this chapter are assessed. An ESU shall be that quantity of impervious surface area as determined in the program, but in no event shall an ESU be less than one square foot nor more than 3,000 square feet of impervious surface area. Each single-family residential parcel, duplex unit, and townhouse unit in the city shall be deemed to be one ESU. When setting rates for parcels having a commercial, industrial, institutional, or multi-family residential use, each additional increment of impervious surface area that exceeds one ESU shall constitute an additional ESU.

H. "Impervious surface" shall mean hard surfaced areas that prevent or hinder the entry of water into the soil mantle and/or cause water to run off the surface in greater quantities or at an increased rate of flow than under natural conditions. Common impervious surfaces include, but are not limited to, rooftops, concrete or asphalt roads, sidewalks and paving, walkways, patios, driveways, parking lots or storage areas, and gravel, hard-packed dirt, oiled or other surfaces which impede the natural infiltration of surface water or which change runoff patterns existing prior to development or installation of the impervious surface.

I. "Industrial use parcel" shall mean every parcel in the city on which industrial activity is conducted and as may be defined in the city’s land use and development codes.

J. "Institutional establishment/use parcel" shall mean every parcel in the city on which institutional establishments and/or institutional use activity is conducted and as may be defined in the city’s land use and development codes. Without limiting the foregoing, hotels, motels and institutional lodging facilities shall be considered an institutional use.

K. "Multi-family residential parcel" shall mean every parcel in the city on which a residential structure accommodating three or more dwelling units is located. Multi-family residential parcel shall include residential hotels, condominiums (other than townhouse units), and retirement apartments, as defined by the city’s land use and development codes.

L. "Parcel" shall mean the smallest separately segregated legal unit or plot of land having identified boundaries or which is documented for real property purposes, and having a tax lot number assigned by the Snohomish County assessor/treasurer.

M. "Rate charge" shall mean the amount owed after applying the appropriate unit rate to a particular parcel based upon factors established by this chapter. See Table 8-1.

N. "Service charge" shall mean the amount incurred by the city in providing specific services to a given parcel and/or to the parcel’s surface water control facilities; provided, that such service charges shall not be imposed under this chapter for the development, construction, or reconstruction of property.

O. "Single-family residential parcel" shall mean every parcel in the city on which a residential structure (including mobile homes) accommodating one dwelling unit is located, and as may be defined in the city’s land use and development codes.

P. "Surface water control facilities" shall mean surface water control facilities as defined in the program.

Q. "Townhouse unit" shall mean a single-family residential condominium unit falling under the provisions of Chapters 64.32 and 64.34 RCW which is attached to one or more residential condominium units and separated one from another by common side walls extending from foundation to roof with each dwelling unit having a separate, direct entrance from grade. Townhouse units shall include all residential condominium units found in a row, linked, patio, garden court, or other styles which meet the criteria of this definition.

R. "Undeveloped parcel" shall mean any unimproved parcel without impervious surface area, including but not limited to land used for open space, and as may be defined by the city’s land use and development codes.

S. "Unit rate" shall mean the dollar amount determined by the city council to be charged per one ESU. (Ord. 2001-534 § 1; Ord. 2000-501 §§ 1, 2, 3)

8.12.050 Rates and service charges.

A. Rate Factors. Rates shall be based on the relative contribution of surface and stormwater runoff from a given parcel to surface water control facilities. Relative contribution shall be based on the average estimated percentage of impervious surface on a parcel, its land use classification, the total acreage of the parcel, the parcel’s measured impervious surface area, the provision of in-kind services such as stream improvements or donation of property, and other factors listed in RCW 35.67.020.

B. Rates. The city council shall establish from time to time, by resolution, the unit rate.

C. Service Charge Factors. Service charges shall be based on specific services provided by the city to a given parcel and/or to the parcel’s surface water control facilities.

D. Service Charges. Service charges shall be the total cost to the city for providing specific services to a given parcel or to surface water control facilities associated with one or more given parcels. Without limiting the foregoing, and as example only, such services may include the cost of repairs, restoration and/or cleaning needed to bring the surface water control facility up to its intended operating efficiency. The city council may establish from time to time, by resolution, the cost of specific service charges; provided, that in the absence of a resolution, the city shall apply its actual costs of supplies, time, material, personnel costs (including benefit and other applicable costs), and other expenses to determine the cost of a given service performed under this chapter.

E. Senior Citizens – Utility Service Charges – Relief. There is hereby granted to low income senior citizens who meet the qualifications and requirements of subsection F of this section relief from the city’s surface water utility service charges as follows: all billings for surface water utility charges by the city during the calendar year to customers who meet the qualifications and requirements of this chapter shall be reduced by 34 percent of the surface water utility charges prescribed by the city’s surface water utility rate resolution then in effect.

F. Senior Citizens – Utility Service Charges – Qualifications. To qualify for the relief set forth in subsection E of this section the applicant shall:

1. Be 62 years of age or older at all times during any period for which a billing reduction or reimbursement is requested;

2. Be a resident of the city of Mill Creek at all times during any period for which a billing reduction or reimbursement is requested;

3. Have a total annual income, as defined on the application, of no more than $14,000 per year, or $18,000 per year if married;

4. Own the single-family home to which the surface water utility bill is charged; and

5. Complete an application renewal form annually.

A notice of renewal of application will be mailed annually to those currently receiving a discount. The completed renewal application form must be returned to the department of finance of the city of Mill Creek within 30 days of the date of mailing or the discount will no longer apply.

G. Senior Citizens – Application Requirements. All applications for the senior discount authorized by this chapter must be filed with the department of finance of the city of Mill Creek. Applicants may file an application for relief at any time during the calendar year. Discounts will commence on the next subsequent billing date following approval of the application with the exception that applications filed by February 28th will be applied to the current billing year. All applications for relief shall be submitted to the department of finance in writing on a form provided by said department and certified by the applicant that all information provided therein is true. The department of finance of the city may publish applications, rules and regulations to implement and administer the senior relief discount. (Ord. 2003-559 § 1; Ord. 2001-534 § 1; Ord. 2000-501 § 4)

8.12.060 Billing and billing procedures.

A. Rates. All parcels subject to rate charges under this chapter shall be assessed annually. Billing statements shall be sent directly to property owners on the schedules outlined below.

B. Services Charges. All parcels subject to service charges under this chapter shall be billed promptly upon completion of the service. Any service charges remaining unpaid 30 days after invoice may be collected or foreclosed on in accordance with the usual procedures of the city, or may be subject to the lien provisions of this chapter, or both, at the director’s discretion.

C. Single-Family Residential Billing Schedule. The annual fee assessed under this chapter for single-family parcels, duplexes and townhouse units shall be paid in full on the following schedule. The billing schedule and procedures to be applied to such single-family dwellings shall be as follows:

D. Commercial, Industrial, Institutional, Condominium and Multi-Family Billing Schedule. The annual fee assessed under this chapter for commercial use parcels, industrial use parcels, institutional use parcels, multi-family residential parcels, and condominiums shall be paid in full on the following schedule. The billing schedule and procedures to be applied to such commercial use parcels, industrial use parcels, institutional use parcels, multi-family residential parcels, and condominiums shall be as follows:

E. New Development. The first annual fee assessed under this chapter for all new development shall be paid on the following schedule. The first annual assessment applied to such new development shall be payable in full on the date of approval of the civil construction plans in accordance with MCMC 3.42.210(C) as follows:

Annual fees shall thereafter be assessed and shall be due and payable as provided in subsections C and D of this section. (Ord. 2006-633 § 2; Ord. 2001-534 § 1; Ord. 2000-500 § 1)

8.12.070 Rate adjustments and appeals.

A. Any person receiving a rate charge billing statement under this chapter may file a "request for rate charge adjustment" (hereinafter "adjustment request") with the director within 30 days of the date of the billing statement. Submittal of an adjustment request shall be made on forms provided by the director and shall not extend the period of payment for the rate charge.

B. Upon timely receipt of an adjustment request, the director may grant or approve a rate adjustment only in accordance with this chapter and only upon a finding that one or more of the following conditions exist:

1. The acreage or area of the parcel charged is in error.

2. The parcel is nonresidential and the actual impervious surface area of the parcel, as established by a licensed surveyor or engineer, is more than 50 percent of the maximum square footage of an equivalent service unit greater than or less than the estimated or measured impervious surface area used in determining the rate charge.

3. The rate charged was otherwise not calculated in accordance with the terms of this chapter.

4. The parcel exists in its natural unimproved condition and will remain in its natural unimproved condition for not less than one year with no allowable human activities or manmade improvements that adversely affect water quantity or quality or otherwise create impervious surfaces.

5. The parcel is owned or leased by a public school district or private nonprofit school facility that provides activities that directly benefit the program ("qualifying activities"). Qualifying activities may include, for example, curriculum specific to the issues and problems of surface and stormwater management, and construction and/or maintenance of on-site stormwater mitigation facilities.

6. The parcel includes a constructed or natural on-site surface water control facility that meets all of the following conditions:

a. The constructed or natural facility provides surface or stormwater detention, retention, water quality treatment, and/or conveyance; and

b. The director has determined that the property owner is capable of maintaining and operating the facility; and

c. The facility is maintained by the property owner to the city’s design and operational specifications; and

d. The facility is available for inspection by the city; and

e. Excess capacity, if not used by the property owner, is accessible and available for other related public purposes; and

f. The credit is revocable under conditions where the facility no longer operates at the design level established during the drainage plan review/approval process or otherwise meets all of the conditions in this subsection.

C. The following information may be required by the director to determine eligibility for a rate charge credit; provided, that under no circumstances shall the amount of the credit exceed either the amount of cost savings to the utility or the unadjusted rate charge:

1. An approved drainage plan; and

2. Calculation of the credit amount based on site-specific data; and

3. Signature of and verification by the person responsible for the accuracy of the credit application material; and

4. Information, or financial guarantees, sufficient to ensure that the property owner is willing and has the ability and capacity to maintain the facility.

D. When granted, an adjustment request shall only apply to the rate charge bill then due and payable and rate charge bills subsequently issued. If an adjustment request is granted which reduces the rate charge for the current year, the applicant shall be refunded the amount overpaid in the current year only. If the director finds that a rate charge bill has been undercharged, then at the director’s discretion, either an amended bill shall be issued which reflects the increase in rate charge, or the undercharged amount shall be added to the next year’s bill. Any amended bill shall be due and payable under the provisions set forth in this chapter.

E. The property owner shall have the burden of proving by a preponderance of the evidence that the desired adjustment request meets the requirements of this section.

F. Decisions on adjustment requests shall be made by the director based on information submitted by the applicant in the adjustment request and by the public works department. Decisions shall be made within 30 days of the date of the adjustment request, except when additional information is requested or needed by the director. The applicant shall be notified in writing of the director’s decision.

G. In the event that the director determines to replace estimated impervious surface area with measured impervious surface area in the city’s rate calculation, then, in the absence of an appeal, such actual impervious surface area shall be used for future rate charge billings.

H. Decisions of the director on adjustment requests shall be final unless, within 20 days of the date the director’s decision was mailed, the applicant submits in writing to the city clerk a notice of appeal setting forth a brief statement of the grounds for appeal, the relief sought, and requesting a hearing before the board of appeals/adjustment. Appeals from a decision of the board of appeals/ adjustment shall be governed by the board’s regulations. (Ord. 2001-534 § 1)

8.12.080 Use of funds.

Rate charges collected under this chapter shall be deposited into the fund to be used only for the purpose set forth in MCMC 8.12.020. Services charges collected under this chapter shall be used to reimburse the city for its costs and expenses. (Ord. 2001-534 § 1)

8.12.090 Lien for delinquent charges – Enforcement.

A. 1. Commercial Accounts. Delinquent rate and service charges for commercial accounts shall bear interest at the maximum rate per annum allowed by law, or such rate as may hereafter be authorized by law, computed on a monthly basis from the date of delinquency until paid. Interest shall be calculated at the rate in effect at the time of payment of the charges regardless of when the charges were first delinquent.

2. Residential Accounts. Residential accounts unpaid in whole or in part after April 1st will be charged a late penalty of $10.00.

B. The city shall have a lien for delinquent service and rate charges, including interest thereon, against any parcel subject to such charges. Such lien shall be effective for a period of one year without the necessity of any writing or recording of the lien with the Snohomish County auditor. Such lien shall be superior to all other liens and encumbrances except general taxes and local and special assessments. Such liens shall be effective and shall be enforced and foreclosed in the manner provided by Chapter 35.67 RCW.

As an alternative to the procedure set forth in this section, the city may, at its discretion, foreclose on and/or collect delinquent service charges in the same manner as for other unpaid city charges. (Ord. 2006-633 § 2; Ord. 2001-534 § 1)