HomeMy WebLinkAboutCHAPTER 77ACHAPTER 77A. STORM WATER UTILITY
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77A. STORM WATER UTILITY
77A.01. Findings and Determination. Subdivision 1. Storm water runoff contributes
to non-point source pollution of the City’s water resources. The City prepared the
Rochester Comprehensive Storm Water Management Plan (“Plan”) in 1997, updated it in
1999, and incorporated it by reference into Rochester’s Code of Ordinances - Land
Development Manual, thereby requiring storm water management and encouraging a
regional approach to managing storm water.
Subd. 2. There is now a need to supplement the Plan with a Storm Water Pollution
Prevention Program (“Program”) in response to the National Pollutant Discharge
Elimination System (NPDES) small municipal separate storm sewer system (MS4) permit
requirements and City growth. The Program hereby incorporates the Plan by reference.
The Program goal is to effectively manage storm water so that the chemical, biological,
and physical health of the City’s water resources are maintained and improved. All real
property in the City contributes to the need for storm water management and all its
citizens’ benefit from the Program.
Subd. 3. Heretofore, the Plan has been financed and paid for through Storm Water
Management Plan Area Charges (“Charges”) or developer -financed Storm Water
Management System (“System”) construction, in addition to other revenues of the City. It
is now necessary and desirable to provide a revised approach to recover some or all of the
future costs of implementing the Program. A Storm Water Utility Fee and Customer
Charge (collectively hereinafter referred to as “Fee”) are hereby adopted , as provided in
this chapter. Additionally, Charges will be deemed mandatory and developer -financed
System construction will not be allowed as an alternative to Charges, unless otherwise
determined by the Director of Public Works to meet sub -watershed specific storm water
management needs.
Subd. 4. In imposing Fees and Charges, it is necessary to establish a
methodology that undertakes to make them just and equitable. Taking into account the
status of completion of the System, past methods of recoverin g System cost, the City’s
geophysical setting, permit requirements, and other relevant factors, it is determined that it
would be just and equitable to assign the responsibility for some of the costs of
implementing the Program on the basis of impervious area and Land Use Factors; the two
primary predictors of storm water runoff volumes, runoff discharge rates, and impacts to
our water resources. Additionally, Program administration and implementation costs will
be taken into consideration along with indirect and direct benefits resulting from the
Program. Program costs for activities that must be implemented and applied to all parcels
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regardless of imperviousness, parcel size and land use are more equitably allocated
through a Customer Charge applied to each developed parcel.
Subd. 5. It is the City’s intent to create a Storm Water Utility (“Utility”) based on
factors that influence runoff quantity and quality, including land use and the amount of
impervious surface on the property along with fixed program costs. It is in the public’s
interest to fund the Program with a user Fee that allocates the costs of storm water
management to all property owners in the City and that further seeks to base the amount
of the Fee on the extent that each parcel of real property contributes to the need for the
Program. A Utility offers financial management options that can assist the City in
implementing the Program to maintain and improve its water resources. A parcel based
system will be utilized to classify parcels and assign billing to the Property Owner. This
system will rely on Olmsted County parcel data to determine the classification; the area, in
acres; and the parcel owner. (3869, 5/19/08; 4344, 6/4/18)
77A.02. Statement of Legislative Intent. Subdivision 1. In the exercise of its
governmental authority to protect the environment and to promote the public health, safety,
convenience and general welfare of its citizens and visitors, the City intends to operate and
maintain a System and implement a Program to manage the quantity and quality of storm
water. This Chapter is adopted in the further exercise of such authority and for the same
purposes.
Subd. 2. Assigning Fees and Charges based upon expected typical storm water
impacts cannot be done practicably with mathematical precision, but can only be
accomplished within reasonable and practical limits. It is this Chapter’s purpose to
establish a reasonable and practical methodology for assigning such Fees and Charges.
77A.03. Definitions. Subdivision 1.Unless the context specifically indicates
otherwise, the meaning of the terms used in this chapter shall be as follows:
Subd. 2. The term “Charges” is synonymous with “Storm Water Management Plan
Area Charges” and shall mean the Charges applied to new development or redevelopment
projects for the availability of and connection to the City’s System and to assist in providing
regional storm water quality improvements and storm water runoff quantity control.
Subd. 3. The term “Credit” shall mean a conditional reduction in the amount of the
Fee to an individual Non-Residential property owner based on the provision of and
continuing presence of an effectively maintained and operated Structural Best
Management Practice or the continuing provision of a Non-Structural Best Management
Practice by a property owner, which system, facility, service or activity reduces the City’s
cost of providing storm water management services or System components, according to
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the provisions of the Storm Water Utility Fee Credit Manual. Credits do not apply to
Charges.
Subd. 4: The term “Developable Acres” shall mean the gross acres of a
development or redevelopment project, less the acres of:
A. Wetlands,
B. Floodways,
C. Public storm water detention and sedimentation
facilities,
D. Private storm water detention and sedimentation
facilities, if the property as developed is not served by
an existing or planned downstream detention and
sedimentation facilities,
E. Parkland, and
F. Natural slopes in excess of 18% that will remain after
site grading is completed, consistent with the City-
approved grading plan for the development.
Subd. 5. The term “Developed” shall mean real property that has been altered from
its natural state by the addition to or construction of impervious area on all or part thereof.
Subd. 6. The term “Fee” shall be synonymous with “Storm Water Utility Fee and
Customer Charge” and shall mean the monthly Fee imposed on developed Residential
and Non-Residential parcels so as to assist the City in implementing its Program.
Subd. 7. The term “Fund” shall be synonymous with “Storm Water Utility Fee and
Customer Charge” and shall mean the fiscal and accounting entity created by this chapter
with a self-balancing set of accounts recording cash and other financial resources,
together with all related liabilities and residual equities or balances, and changes therein,
that are segregated for the purpose of implementing specific storm water management
activities or attaining storm water management objectives in accordance with the Program
and this chapter.
Subd. 8. The term “Impervious Area” shall mean a surface area that is altered, in
conjunction with the removal of vegetation, and compacted or covered with material that is
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resistant to the infiltration of water, including but not limited to, most conventionally
surfaced streets, roofs, sidewalks, patios, driveways, parking lots, and any other oiled,
graveled, graded, compacted, or other surfaces which impede the natural filtration and
infiltration of storm water.
Subd. 9. The term “Incentive” shall mean a monetary gain, such as a rebate or a
coupon, that is earned by a Residential property owner for implementing and maintaining
Structural or Non-Structural Best Management Practices that benefit the City’s Program
and System.
Subd. 10. The term “Land Use Factor” (“LUF”) shall mean a number used to
integrate the amount of impervious area on a parcel, land use types and densities, storm
water runoff flow, and pollutant loading potential. A parcel-specific Land Use Factor is
extrapolated for each Non-residential parcel using parcel-specific impervious area
measurements and the LUF parameters contained in Table 8.1 of the Plan and expanded
upon in Section 77A.05, subd. 2.
Subd. 11. The term “Non-Residential” shall mean a Utility customer class that refers
to all parcels other than exempt parcels, residential parcels, and condominium parcels,
including their commonly owned areas. (4344, 6/4/18)
Subd. 12. The term “Non-Structural Best Management Practices” shall mean
services or activities that help reduce the quantity and improve the quality of storm water
runoff.
Subd. 13. The term “Plan” shall be synonymous with “Storm Water Management
Plan” and refers to the 1999 Rochester Comprehensive Storm Wa ter Management Plan
and any subsequent addenda or supplements, such as technical memoranda or sub -
watershed reports that are hereby adopted by this chapter.
Subd. 14. The term “Program” shall be synonymous with “Storm Water Pollution
Prevention Program” (“Program”) and shall mean the assemblage of NPDES Phase II MS4
permit requirements and any additional planning, design, construction, inspection,
regulation, improvement, operation, maintenance, and replacement of the System and the
implementation of activities related to the management of storm water, such as, but not
limited to: storm water education and public participation, water quality protection,
drainage, grading and erosion control, pollution prevention, and illicit discharge detection
and elimination.
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Subd. 15. The term “Property Owner” shall mean any partnership, corporation or
any person who (alone, jointly or severally with others) is identified as the owner according
to the Olmsted County Property Records and Revenue Tax Record. (4344, 6/4/18)
Subd. 16. The term “Residential” shall mean a Utility customer class that refers to
any developed parcel classified as 1a/4bb(1) RESIDENTIAL SINGLE UNIT, 1a/4b(1)
RESIDENTIAL 1-3 UNITS, or 1a RES/AG SINGLE UNIT as identified by the Olmsted
County Property Records and Revenue Tax Record . Should Olmsted County change its
classification system in the future, the term Residential shall include any developed parcel
that would have been considered 1a/4bb(1) RESIDENTIAL SINGLE UNIT, 1a/4b(1)
RESIDENTIAL 1-3 UNITS, or 1a RES/AG SINGLE UNIT under the criteria in place as of
May 1, 2018. An individual tax parcel that is annexed into the City of Rochester after
October 6, 2003, and that contains a mix of a single residential and a single non-
residential use shall be charged the Residential Fee until such time that the parc el
boundary is modified or the parcel receives a zoning or other land use change. At that
time, the parcel shall remain a residential customer only if the parcel is used solely as a
residence. If any non-residential uses remain, the parcel shall then be converted to a non-
residential customer. (3983, 10/4/10; 4344, 6/4/18)
Subd. 17. The term “Storm Water Unit Rate” shall mean the amount of money
needed on a per parcel basis, given the individual parcel sizes and percent impervious
areas of all developed parcels in the City that, in total, will provide Utility revenues
sufficient to provide the necessary services. The Storm Water Unit Rate is expressed in
dollars per acre per month.
Subd. 18. The term “Structural Best Management Practices” shall mean constructed
structural improvements that help reduce the quantity (rates or volumes) and improve the
quality of storm water runoff.
Subd. 19. The term “System” shall be synonymous with “Storm Wate r Management
System” and shall mean a System of storm and surface water management facilities
including, but not limited to: drains, inlets, catch basins, storm sewers, manholes, outfalls,
channels, ditches, drainage easements, retention and detention basi ns and ponds,
infiltration facilities, or any other constructed or natural features utilized to convey and/or
treat surface water, storm water, or snowmelt.
Subd. 20. The term “Condominium” shall mean a Utility customer class that refers
to a parcel with a class of 1a/4bb(1) RESIDENTIAL SINGLE UNIT and a Property Use
Code of CONDOMINIUM as identified by the Olmsted County Property Records and
Revenue Tax Record. Should Olmsted County change its classification system in the
future, the term Condominium shall include a utility customer class that refers to a parcel
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that would have been considered 1a/4bb(1) RESIDENTIAL SINGLE UNIT with a Property
Use Code of Condominium under the criteria in place as of May 1, 2018. (4344, 6/4/18)
Subd. 21. The term “Undeveloped” shall mean a parcel of real property that has an
inconsequential amount of impervious area (<1%) a nd has established vegetative cover.
Subd. 22. The term “Utility” shall be synonymous with “Storm Water Utility” and shall
mean the organization providing Program services subject to special governmental
regulations.
Subd. 23. The term “Water” shall mean, for the purposes of storm water
management, storm water, surface water, or snowmelt.
(3869, 5/19/08)
77A.04. Establishment of the Utility and Fund. Subdivision 1. Pursuant to
Minnesota Statute, Section 444.075, the City of Rochester hereby establishes a Utility and
authorizes the imposition of just and equitable Fees and Charges for the use, availability,
operation, maintenance, replacement, and development of its System and implementation
of its Program.
Subd. 2. All Fees and Charges, along with grants, grading plan and permit fees,
other permit or inspection fees, interest earnings, and other revenues collected for the
Utility, shall be deposited in the Fund. The Council may make additional appropriations to
the Fund. All disbursements from the Fund shall be for the purposes set forth in section
77A.11.
Subd. 3. The Utility will be under the administration of the Director of Public Works.
77A.05. Rate Structure. Subdivision 1a. The Council finds that, irrespective of the
size of a Residential parcel, the amount of storm water runoff and pollutant loading from
Residential development is similar and that it would be excessively and unnecessarily
expensive to determine precisely the percent impervious area for each such Residential
parcel. Therefore, each Residential parcel in the City shall be charged a uniform
Residential Fee, regardless of the size of each parcel or the amount of impervious area on
each parcel. For the purpose of calculating the Fee, all Residential parcels shall be
considered to be 0.235 acres with 25% impervious area . The Residential Fee will be
calculated by multiplying a LUF of 1.0 by an average parcel size of 0.235 acres times the
storm water unit rate, as established by Council resolution. [Fee = (LUF= 1.0) x (parcel
size=0.235 acres) x (storm water unit rate)]. For the purpose of calculating the Fee, all
Condominiums shall be considered to be 0.025 acres with 100% impervious area. The
Condominium Fee will be calculated by multiplying a LUF of 5.0 by an average parcel size
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of 0.025 acres times the storm water unit rate, as established by Council resolution. [Fee =
(LUF= 5.0) x (parcel size=0.025 acres) x (storm water unit rate)]. (4344, 6/4/18)
Subd. 1b. The Council finds that a number of utility expenditures must be
implemented and applied to all parcels regardless of imperviousness , parcel size and land
use. Therefore, Program costs for these activities are more equitably allocated through a
Customer Charge applied to each developed parcel. These expenditures would include,
but are not limited to, those associated with billing ser vices, administrative services
provided by other City departments, permit administration, implementation of public
education and public participation activities, regulatory compliance, storm water
management planning, data management and system mapping. F or the purposes of
allocating these expenditures, each Residential and Non -Residential parcel in the City
shall be charged a uniform monthly Customer Charge.
Subd. 2. The Fee for Non-Residential parcels of land shall be calculated by
multiplying a LUF (extrapolated from the LUF table shown below using the parcel’s
individually-measured percent impervious area) by the size of the parcel (in acres) and by
the storm water unit rate, as established by City Council resolution. [Fee = (LUF) x (parcel
size in acres) x (storm water unit rate)]. The minimum Fee for Non -Residential parcels
shall equal the Residential Fee.
%
IA
LUF %
IA
LUF %
IA
LUF %
IA
LUF
1 0.37 26 1.03 51 1.94 76 3.58
2 0.39 27 1.07 52 1.98 77 3.66
3 0.42 28 1.10 53 2.02 78 3.74
4 0.45 29 1.13 54 2.05 79 3.82
5 0.47 30 1.17 55 2.09 80 3.90
6 0.50 31 1.20 56 2.13 81 3.98
7 0.53 32 1.23 57 2.17 82 4.06
8 0.55 33 1.27 58 2.21 83 4.14
9 0.58 34 1.30 59 2.25 84 4.22
10 0.61 35 1.33 60 2.30 85 4.30
11 0.63 36 1.37 61 2.38 86 4.36
12 0.66 37 1.40 62 2.46 87 4.42
13 0.68 38 1.44 63 2.54 88 4.48
14 0.71 39 1.48 64 2.62 89 4.54
15 0.74 40 1.52 65 2.70 90 4.60
16 0.76 41 1.55 66 2.78 91 4.64
17 0.79 42 1.59 67 2.86 92 4.68
18 0.82 43 1.63 68 2.94 93 4.72
19 0.84 44 1.67 69 3.02 94 4.76
20 0.87 45 1.71 70 3.10 95 4.80
21 0.89 46 1.75 71 3.18 96 4.84
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22 0.92 47 1.78 72 3.26 97 4.88
23 0.95 48 1.82 73 3.34 98 4.92
24 0.97 49 1.86 74 3.42 99 4.96
25 1.00 50 1.90 75 3.50 100 5.00
NOTE: %IA < 1.0 is considered inconsequential and shall have a LUF =
0.
Subd. 3 A Charge shall be applied to new development or redevelopment
projects. The Charge shall be calculated by multiplying the total Developable Acres of the
parcel(s) by a rate (in dollars per acre, as established by City Coun cil resolution) by the
LUF (extrapolated from the LUF table noted in subd. 2, above, using the parcel’s
individually measured percent impervious area). Residential developments up to 5.5 units
per acre shall have a LUF of 1.0. There shall be no reduction of the Charges for areas
designated for private storm water management facilities or private open spaces.
Subd. 4. The Council may periodically review the Fees and Charges established
herein and may revise the Customer Charge and the storm water unit ra te for the Fee or
the Plan rate for the Charge to reflect changes in the cost of providing said Program
services.
A. As established by Council resolution, the Customer Charge,
the Storm Water Unit Rate and the Plan rate may be
modified on an annual basis, or
B. The Council may set a multi-year series of Customer
Charges, Storm Water Unit Rates or Plan rates, or
C. The Customer Charge, the storm water unit rate and the
Plan rate shall be adjusted automatically on November 1st of
each year based on the change in the Construction Cost
Index as measured in the Minneapolis/St. Paul area during
the preceding twelve-month period and as published in
Engineering News Record.
D. The Council may, at their discretion, review and adjust the
Customer Charges, storm water rates and Plan rates at any
time.
(3869, 5/19/08)
77A.06. Credits and Incentives. Subdivision 1. Except as provided in this
section, no public or private property shall receive Credit or Incentives for any Structural or
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Non-Structural Best Management Practice unrelated to the City’s cost of providing
Program services.
Subd. 2. A Credit is an appropriate means of adjusting Fees for Non -Residential
property owners, thereby recognizing that effective Structural or Non -Structural Best
Management Practices can reduce the City’s storm water management burden .
Subd. 3. An Incentive is an appropriate means of recognizing efforts of Residential
property owners that implement Structural or Non-Structural Best Management Practices
that reduce the City’s storm water management burden.
Subd. 4. The City Council may, by resolution, adopt policies recommended by the
Director of Public Works or others to grant Credits or Incentives. Adopted policies will be
described in a Storm Water Utility Fee Credit Manual prepared by the Director of Public
Works and that identifies, among other things, customer eligibility criteria, the Structural
and Non-Structural Best Management Practices that qualify for application, calculation
methods, and an application form.
Subd. 5. Non-Residential customers that have implemented Structural or Non-
Structural Best Management Practices as outlined in the Credit Manual may be eligible for
Credits. Credits will be based upon hydrologic and any other pertinent data to be supplied
by property owners, which data demonstrates a substantial Program and System benefit, a
reduction of service demand, implementation of an approved activity that meets NPDES
MS4 permit requirements, or an avoidance of Fund expe nditures. Credits shall be
generally proportional to the benefit provided to address the water quality, quantity and
conveyance needs of the City’s Program and System. Once a Credit is awarded,
adjustments of Fees shall be made retroactive to the first f ull monthly billing cycle the Best
Management Practice was implemented, but shall not be retroactive for more than the last
six monthly billing cycles, based on the month the completed application for Credit was
received, and shall not precede the January 2004 billing cycle. Credits for Best
Management Practices owned, operated, implemented, and maintained by entities other
than the City will only be allowed if a declaration and maintenance agreement is executed
with the City (for Structural Best Management Practices), right-of-entry for inspections is
guaranteed, and a self-reporting process is implemented.
Subd. 6. Residential customers that have implemented Structural or Non -
Structural Best Management Practices may be eligible for Incentives. The Co uncil finds
that irrespective of the size of a Residential parcel, the amount of storm water runoff and
pollutant loading from Residential development is similar and that it would be excessively
and unnecessarily expensive to evaluate precisely the Program benefit of Best
Management Practices implemented on Residential parcels. Accordingly, Credits will not
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be issued for Structural Best Management Practices for Residential parcels . Alternatively,
the Council may adopt procedures in the Storm Water Utility Fee Credit Manual that
provide Incentives, such as rebates or coupons, to Residential customers that implement
and maintain Best Management Practices that benefit the City’s Program and System,
reduce service demand, meet NPDES MS4 permit requirements, or avoid Fund
expenditures.
77A.07. Exemptions. Subdivision 1. The Council has determined that all Developed
real property in the City contributes storm water runoff to the System and either uses or
benefits from its existence. Therefore, except as otherwise provided in this section, all real
property in the City, including property that is exempt from property tax, shall be charged
the Fee.
Subd. 2. A Fee will not be imposed on the following lands:
A. Undeveloped land with an insignificant amount of impervious
surface (<1%) and with established vegetative ground cover,
due to the absence of improvements leading to adverse storm
water impacts from these parcels; and
B. Public transportation streets, roads, highways, trails, bike paths
and their rights-of-way; and airport runways, taxiways and
aircraft parking areas, due to the general public use and benefit
derived from these public transportation facilities.
77A.08. Payment of Fees and Charges. Statements for Fees shall be computed
and invoiced monthly by Rochester Public Utilities for each account. Terms for payment of
Charges shall be outlined in agreements with developers.
77A.09. Correction of Fee. Subdivision 1. A property owner or the person
responsible for paying the Fee may request correction of the Fee by submitting the request
in writing to the Director of Public Works stating the grounds for the correction. Grounds
for correction of the Fee include:
A. Incorrect classification of the property for purposes of
determining the Fee;
B. Errors in the percent impervious area of the parcel or size of the
parcel;
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C. Mathematical errors in calculating the Fee to be applied to the
property; and
D. Errors in the identification of the property owner of a property
subject to the Fee.
Subd. 2. The Director of Public Works shall make a determination within thirty days
after receipt of the owner’s completed written request for correcti on of the Fee. The
decision made by the Director of Public Works on a request for correction of the Fee may
be appealed to the Common Council. Billing adjustments that necessitate a refund will be
administered according to RPU’s policy on Adjustment of El ectric and Water Bills. (4344,
6/4/18)
Subd. 3. A property owner must comply with all rules and procedures adopted by
the City when submitting a request for correction of the Fee and must provide all
information necessary for the Director of Public Works to make a determination on a
request for correction of the Fee. If the property owner alleges an error in the percent
impervious area of the parcel, the request for correction must include a certification by a
registered professional engineer or registered land surveyor of the parcel size, impervi ous
area, and percent impervious area of the property in question. Failure to fully comply with
the provisions of this subdivision shall be grounds for denial of the Fee correction request .
77A.10. Certification of Unpaid Fees. Not less than annually Rochester Public
Utilities shall certify to the City Clerk a list of unpaid Utility customer accounts showing the
names and addresses of all unpaid accounts. The Council shall certify these unpaid
amounts, with interest, to the auditor for collection with taxes against the property receiving
the use of the storm water facilities under the procedure found in Section 72.11 of this
code. The unpaid amounts shall be a lien on the affected properties as shown in the
unpaid charge tabulation and shall be collected in the same manner as other unpaid
charges. The sum together with interest shall be credited to the Fund. (3995, 11/15/10;
4344, 6/4/18)
77A.11. Purpose of the Fund. The Fund shall be used solely for the following
Program purposes:
Subd. 1. The acquisition, by gift, easement, purchase, or condemnation of real and
personal property, and interests therein, necessary to construct, operate, maintain, and
replace the System.
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Subd. 2. All costs of planning and implementing the Program and MS4 permit,
including the establishment of reasonable operating and capital reserves to meet
unanticipated or emergency storm water management requirements.
Subd. 3. Engineering, debt service and related financing expenses, construction
costs for new System components, enlargement or improvement of existing System
components, and equipment replacement.
Subd. 4. Operation, maintenance, and replacement of the System.
Subd. 5. Monitoring, surveillance, and inspection of the System.
Subd. 6. Water quality education, improvement, and monitoring programs.
Subd. 7. Retrofitting developed areas for pollution prevention.
Subd. 8. Inspection and enforcement activities associated with the illicit discharge of
pollutants to Rochester’s water resources, including but not limited to se diment from
construction sites.
Subd. 9. Billing, reporting, and other administrative costs, including a payment in
lieu of taxes contribution, to the City’s General Fund.
Subd. 10. Other activities reasonably required to achieve the purposes of this
Chapter.
77A.12. Flooding and Liability. Floods from storm water runoff may occasionally
occur that exceed the System capacity that has been constructed, operated, or maintained
by funds made available under this Chapter. This Chapter shall not be const rued or
interpreted to mean that property subject to the Fees and Charges established herein will
be free from storm water flooding or flood damage, or that a System capable of handling
all storm events can be cost-effectively constructed, operated, or maintained. Nor shall
this Chapter create any liability on the part of, or cause action against, the City, or any
official or employee thereof, for any flood damage that may result from such storms or the
runoff thereof. Nor does this Chapter purport to red uce the need or the necessity for
obtaining flood insurance by individual property owners.
(3599, 10/6/03; 3869, 5/19/08; 3983, 10/4/10; 3995, 11/15/10; 4344, 6/4/18)