Exhibit A

Guiding Principles for Stormwater Discounts

Page 1

The Council of the City of Portland adopts these principles to guide the development and implementation of the Clean River Incentive and Discount Program. The Director of the Bureau of Environmental Services shall incorporate these principles into the discount program administrative rules. Furthermore, the Director shall enlist the cooperation and participation of the Office of Management and Finance, Office of Neighborhood Involvement, Bureau of Development Services, Portland Development Commission and other City agencies and community organizations as needed to ensure the success of the stormwater discount program.

1.  Provide Access, Information and Technical Assistance

a.  Incentives and discounts are available to all eligible City ratepayers regardless of property class, use or location.

b.  The City will take aggressive steps to inform every ratepayer about the stormwater discount program, requirements to qualify, methods for managing stormwater runoff on-site, and the process for registering property. Outreach activities will include direct mailings, bill stuffers, newspaper articles and ads, the use of other media, cooperative efforts with community partners, the Internet and door-to-door canvassing.

c.  Outreach strategies will be developed to address the unique obstacles to the discount program caused by language, culture, infirmity, age or economic distress.

d.  Program information, brochures, registration forms and other program materials will use language and art that are clear and understandable to ratepayers who are unfamiliar with City stormwater policies and programs, and stormwater management techniques.

e.  The City will develop and implement technical assistance strategies for ratepayers with challenging and complicated site conditions, including schools and religious institutions,

f.  City outreach and technical assistance efforts will include information about the importance of stormwater to the quality of life in Portland, City efforts to protect water resources, and ways that citizens can advance environmental and public health goals.

2.  Determine Ratepayer Eligibility for Stormwater Discounts and Credits

a.  A stormwater discount is a grant awarded by the City to an eligible ratepayer, based on objective criteria relating to the ratepayer, and the extent and effectiveness of on-site stormwater management. The grant takes the form of a discount on the City’s utility bill out of administrative convenience. City Council reserves the right to alter eligibility requirements to meet changing regulatory requirements and legal commitments, and to protect the long-term financial stability of the stormwater utility.

b.  In order to be eligible for stormwater discounts, the registrant(s) must be the current ratepayer. The person(s) should have a current City utility account, or be honoring special arrangements to eliminate any billing delinquencies. The person(s) should have the authority to grant the City access to the property to conduct a limited inspection of stormwater facilities. If the ratepayer does not have such authority, the registration form must be co-signed by the person(s) so empowered.

Exhibit A

Guiding Principles for Stormwater Discounts

Page 2

c.  The stormwater discount is awarded to the ratepayer for stormwater management facilities that serve the property described on the registration form. The ratepayer cannot transfer discount eligibility from one property to another. Similarly, the discount eligibility of a given property does not transfer from one ratepayer to another without the filing of a signed discount registration form. The City will provide a simple and efficient process for such transactions.

d.  Additional conditions for ratepayer eligibility include:

i.  The ratepayer’s registration accurately describes existing private stormwater management facilities.

ii.  Private stormwater management facilities are properly located, sized, maintained and operating, based on City, state or federal specifications. Private stormwater facilities comply with all applicable City building, plumbing and stormwater requirements.

iii.  For the purposes of this program, the City is granted limited access to private property to inspect private stormwater facilities, as prescribed by City administrative rules. The inspection shall be limited only to stormwater management facilities.

3.  Calculate Stormwater Discounts and Retroactive Credits

a.  Stormwater discounts are limited to the on-site component of the basic stormwater management charge. The on-site component is set at 35% of the basic stormwater management charge for the first ten fiscal years of the stormwater discount program. Thereafter, City Council may consider changes.

b.  The stormwater discount is calculated based on the extent to which a ratepayer safely controls, retains and disposes of stormwater runoff on private property. For single-family residents (detached houses, row houses and duplexes), the discount is calculated based on the amount of runoff from roof surfaces that is managed safely. For all other ratepayers, the discount calculation is based on the amount of impervious roof and paved areas that are served by private stormwater facilities, and the extent and effectiveness of the facilities to control both the volume and water quality of stormwater runoff.

c.  The discount calculation will be consistent with City stormwater policies as set forth in City Code and the Stormwater Management Manual. City Council reserves the right to review and adjust the discount calculation as required by changing regional, state and federal environmental regulations, legal commitments, and extraordinary financial or economic circumstances.

d.  The City will consider the amount of vegetative cover on private property when calculating a stormwater discount and retroactive credit. The calculation will be based on the number of evergreen and deciduous trees taller than 15 feet and the number of shrubs taller than 5 feet. The calculation will exclude trees or shrubs located in the public right-of-way.

Exhibit A

Guiding Principles for Stormwater Discounts

Page 3

e.  The City will grant retroactive credits on the same basis as stormwater discounts. The credit will be based on the number of days the facilities were in operation and the ratepayer was responsible for the utility account, up to a limit of 12 months. The 12-month period will begin from the date the discount takes effect for the subject property and utility account. In order to qualify for the retroactive credit, the ratepayer must file a completed and signed registration form within 12 months of the start of the discount program. The retroactive credit is processed as a one-time-only adjustment to a ratepayer utility account.

4.  Ensure Performance, Protect Privacy and Provide Due Process

a.  A signed registration form will give the City authority to perform limited, announced audits of property to determine the eligibility of the on-site stormwater management facilities, and the accuracy of the stormwater discount calculation. The City shall schedule the audit at least two weeks ahead of time, and offer the ratepayer at least one opportunity to reschedule to a mutually agreeable date and time.

b.  Within 30 days following a site audit, the City will provide the ratepayer with a report of the Bureau’s findings and recommendations, and the procedures to be used by the ratepayer to request an administrative review.

c.  The City will provide the ratepayer an opportunity to present a written appeal of the Bureau’s findings and recommendations prior to any action affecting the amount of the discount, imposition of any fees, charges or penalties, or other enforcement actions. The Environmental Services Director will make the final determination on all appeals.

d.  Unless otherwise obligated by public records laws, the City shall limit the use of registration documents to activities required to administer the Clean River Incentive and Discount Program.