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10.G.
         
City Council Meeting - FINAL
Meeting Date: 09/05/2017  
Co-Submitter: Chris Kirkendall From: Ryan Roberts, Utilities Engineering Manager

Information
TITLE:
Consideration and Adoption of Resolution No. 2017-32:  A resolution of the Flagstaff City Council adopting Notice of Intention to increase Stormwater Rates or Rate Components, Fees of Service charges and establishing a date for a public hearing on the proposed changes for December 5, 2017.
STAFF RECOMMENDED ACTION:
1) Read Resolution No. 2017-32 by title only
2) City Clerk reads Resolution No. 2017-32 by title only (if approved above)
3) Adopt Resolution No.2017-32
Executive Summary:
This action adopts a Notice of Intention, which is required by the Arizona Revised Statutes Section 9-511.01 prior to a municipality increasing stormwater rates, rate components, fees or service charges. Arizona Revised Statutes require a Notice of Intention be adopted by the City Council and published in the local newspaper to set a date for a public hearing prior to an increase in rates. A report must be filed with the City Clerk and available to the public for review at least 30 days prior to the hearing. This report will be filed with the City Clerk by November 3, 2017. The report must include rate increases being considered and their justification.
Financial Impact:
The City is recognizing the need to establish stormwater rates that will prevent the Water Services Division from having to defer needed capital improvements. An increase in stormwater rates is needed in order to meet current expenditures and provide for an increased capital improvement program to improve the Rio De Flag stormwater system and ensure sound fiscal management of the Stormwater Fund..

The new stormwater rates and service fees would go into effect in March 1, 2018.
Policy Impact:
None
Connection to Council Goal, Regional Plan and/or TeamFlagstaff Strategic Plan:
COUNCIL GOALS:
  • Provide sustainable and equitable public facilities, services, and infrastructure systems in an efficient and effective manner to serve all population areas and demographics
 REGIONAL PLAN:
Goal WR.2.2  Maintain and develop facilities to provide reliable, safe and cost effective stormwater services.
Has There Been Previous Council Decision on This:
Stormwater Rates and Fees were previously amended on April 19, 2016 and new Rates went into effect on July 1, 2016. Ordinance 2016-23 amended section 12-02-002-003, Schedule of Stormwater Management Service Charges and fees within the Flagstaff City Code.
 
Options and Alternatives:
  • Adopt Resolution 2017-32
  • Not adopt Resolution 2017-32. This alternative would be to not implement any adjustments to stormwater rates which would defer the Rio De Flag Flood Control and other Stormwater Capital Improvement Projects.
Background/History:
The City desires stormwater rates and fees that fully fund operations, maintenance and capital costs for Rio De Flag Flood Control stormwater system improvements and other stormwater capital improvements. The existing Rio De Flag channel is significantly undersized for conveying stormwater during flood events. The purpose of the stormwater rate amendments is to meet these challenges and complete the recommended capital improvements needed for this system.
Key Considerations:
In accordance with the adopted City of Flagstaff Water Policies
  • Utility rates and revenues should generate sufficient revenues to meet operational costs, capital program requirements, debt service obligations, and maintain adequate reserves consistent with sound financial management practices.
  • Utility rates should be set proportionate to the cost of providing the water service to each customer class to promote fairness and equity.
  • A financial plan that minimizes future rate and fee impacts on existing and new customers
  • A financial plan that follows the water policies and goals established by City Council on April 1, 2014.
Community Benefits and Considerations:
Regular rate reviews and modifications are necessary to maintain a stable financial position for the stormwater utility and avoid transfers from the General Fund.
Community Involvement:
A public hearing will be advertised to be held at the December 5, 2017 City Council meeting.
Attachments
Res. 2017-32

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