RESOLUTION No. 36361

Establish goals, guiding principles and program directives for the Clean River Incentive and Discount Program (Resolution)

WHEREAS, it is in the City’s best long-term interests to encourage citizens to construct private on-site stormwater management facilities that will help the City meet its legal and regulatory responsibilities to promote environmental and public health and safety, including restoring the health of our rivers and streams, and protecting our investments in public stormwater facilities; and

WHEREAS, stormwater discounts encourage the maintenance of private stormwater investments made to date, and encourage additional stormwater investments at the time of new development, redevelopment, and property retrofits; and

WHEREAS, private on-site stormwater management will become increasingly important as the City reaches urban densities anticipated in the 2040 regional growth management plan; and

WHEREAS, on September 27, 2000, Council adopted Resolution No. 35927, directing the Bureau of Environmental Services to establish and implement the Clean River Incentive and Discount Program, and setting a discount limit of 35% of basic stormwater management charges as determined by internal and independent analyses; and

WHEREAS, on December 6, 2000, Council adopted Ordinance No. 175160, establishing the Clean River Incentive and Discount Program as generally defined by an exhibit containing a Bureau of Environmental Services report of findings and recommendations; and

WHEREAS, on June 4, 2003, Council adopted Resolution No. 36142, establishing a limited retroactive credit for ratepayers who qualify for stormwater discounts; and

WHEREAS, the Office of Management and Finance expects to start up a new utility billing system in March 2006, and allow the posting of stormwater discounts six months later in September 2006; and

WHEREAS, Commissioner Sam Adams conducted a thorough review of stormwater discount proposals, an effort that included deliberations with Council members, ratepayer advocates and stakeholders; and

WHEREAS, on September 22 and 24, 2005, Commissioner Sam Adams conducted two community meetings about stormwater discounts that attracted more than 250 citizens; and

WHEREAS, on October 4, 2005, Council conducted a work session to review the discount program, and give careful consideration to program refinements developed by Commissioner Sam Adams; and

WHEREAS, the City has a fiduciary responsibility to ratepayers and bondholders to maintain the financial health of the stormwater utility, and therefore has a vested interest in pursuing activities that increase the financial independence and self-sufficiency of low income stormwater ratepayers; and

WHEREAS, the proposed refinements advance the adopted purposes of the Clean River Incentive and Discount Program; increase ratepayer accessibility to the discount program, increase participation in low income assistance and earned income credit programs, and increase public education and technical assistance about stormwater management techniques; and

WHEREAS, the discount program represents a new program commitment to achieve the maximum practical level of private on-site stormwater management, adding nearly $10 million in retroactive credit obligations and more than $5.4 million of program development, customer service and technical assistance costs during the current and first five fiscal years of the program;

NOW, THEREFORE, BE IT RESOLVED, that the City shall begin posting stormwater discounts to the utility accounts of eligible ratepayers no more than six months following the successful implementation of a new utility billing system, and that stormwater discounts shall be offered for no less than 10 fiscal years; and

BE IT FURTHER RESOLVED, that the City shall make every effort to meet the planned March 2006 start of the new utility billing system, and the September 2006 start of the Clean River Incentive and Discount Program, and

BE IT FURTHER RESOLVED, that the City shall set January 1, 2007 as the date for calculating retroactive credits in the event that the Clean River Incentive and Discount Program is delayed beyond January 1, 2007; and

BE IT FURTHER RESOLVED, that the Bureau of Environmental Services shall implement the Clean River Incentive and Discount Program consistent with existing City Code, City stormwater policies, Ordinance No. 175160, Resolution Nos. 35927 and 36142, and the guiding principles set forth in Exhibit A of this Resolution; and

BE IT FURTHER RESOLVED, that the Bureau of Environmental Services shall work with the Office of Management and Finance, Office of Neighborhood Involvement, Bureau of Development Services, Portland Development Commission, Office of Sustainable Development, other City agencies, and Social Venture Partners and other community organizations as needed to ensure the success of the stormwater discount program; and

BE IT FURTHER RESOLVED, that the Bureau of Environmental Services shall organize joint outreach efforts with City and community partners to reach all stormwater ratepayers and strive for full participation in the Clean River Incentive and Discount Program by eligible ratepayers; and

BE IT FURTHER RESOLVED, that the Bureau of Environmental Services shall work with City and community partners to increase participation in the City’s low-income utility assistance program, as well as programs that qualify low-income ratepayers for earned income tax credits; and

BE IT FURTHER RESOLVED, that the Bureau of Environmental Services shall organize a task force of ratepayers and other community partners to study the responsibilities and level of funding of the stormwater utility, the stormwater revenue structure and ratemaking methodology, the availability of federal grants and zero-interest loans, and the development of new, dedicated funding sources for street-related stormwater management and other specific elements of the stormwater utility; and present findings and recommendations to the Council by November 1, 2006; and

BE IT FURTHER RESOLVED, that the Bureau of Environmental Services shall work with the Portland Office of Transportation and community stakeholders to study the use of green streets as a means of managing stormwater runoff from public streets and adjacent private property, and present findings and recommendations to the Council by November 1, 2006; and

BE IT FURTHER RESOLVED, that the Bureau of Environmental Services shall complete its grant-financed feasibility study of a tradable stormwater credits program, and present a report to Council by November 1, 2006; and

BE IT FURTHER RESOLVED, that Council shall adjust stormwater rates to finance the costs of retroactive stormwater credits, program development, customer services and technical assistance, beginning with rates that are scheduled to go into effect on July 1, 2006; and

BE IT FURTHER RESOLVED, that Council shall conduct an annual review the performance of the Clean River Incentive and Discount Program, and that such review shall coincide with Council’s annual review of stormwater rates; and

BE IT FURTHER RESOLVED, that this Resolution and Exhibit A are Binding City Policy, and shall be recorded in the repository known as Portland Public Documents (“PPD”).

Adopted by the Council: November 30, 2005    GARY BLACKMER

 Auditor of the City of Portland

Prepared by:  By: /S/ Susan Parsons

Dan Vizzini, Environmental Services

November 7, 2005                  Deputy

BACKING SHEET INFORMATION

AGENDA NO. 1490-2005

ORDINANCE/RESOLUTION/COUNCIL DOCUMENT NO. 36361