Stormwater Surprise(s)

I recently got my first water bill with the stormwater fee included. That was a surprise in itself, I was at a few of the public hearings held prior to passing the ordinances, and I recall hearing the fee would be assessed on property owners. As it was finally passed, that is true for commercial properties, but on the residential side, the fee goes to whomever has the water meter at the property.

Take my case as one example: the property I rent (since '92) includes a detached garage/storage building I do not rent, owner uses it exclusively. The building I do NOT rent moves me from Tier Two to Tier Three based on footage of roof area.

The first thing I discover, when I called the "customer service number" on the utility bill, I was told all stormwater questions had to go to another number. I call it, and get a recorded menu and first try, I end up back with the water clerk who couldn't answer my questions to begin with. I navigate the robo-menu, get a recorded invitation to leave a message. I finally end up talking to the City Engineer, Clinton Bailey, who it turns out is the first line and only line of response to stormwater questions. Minor point I suppose, but if we are going to include the fee on the water bill, shouldn't customers be able to get answers to at least basic questions from someone at the phone number printed on the bill? If nothing else, is having Mr. Bailey as first-and-only first response a good use of the City Engineer's time? I have come to respect the man as a competent employee, but surely he has better things to do.

Here I need to digress into the enabling ordinances. These coincidentally appeared online about the time I'm getting the bill, but they are now up online. Sec. 8.1900 sets the fee itself and the different residential/commercial Tiers system of setting fees. Of more interest to the rate-payer is Sec. 11.800 which has to do with collections and billing.

Under 11.807 "Appeals" I find that all appeals will go through [cut a lot of verbiage] Clinton Bailey, and as he pointed out, burden of proof is on the rate-payer. If I appeal, and do not like his ruling, I find under 11.807(d) "any landowner..may appeal to City Council". I had to point out the landowner language to Bailey, but it's there. In short,I am priviledged to pay the bill, but have no right of appeal to Council as I rent.

In fairness, this sounds like a leftover from when City intended to bill owners. If unintentional it needs amending; if intentional it is outrageous and probably unconstitutional.

If I were to convince my landlord to appeal (why should she, it would increase her bill) the result would be the total revenue to City would go from $4/month to $5, as my bill would drop $1, but the lowest Tier is $2, her share. I will not do any such absurd thing, I'll pay the $4/month, but it is an unintended result of the ordinance.

That brings to mind billing for duplex/triplex rentals. If the renters have separate meters, how is the impervious surface divvied up? Do $4 properties end up paying $6?

One thing I recall well from the public meetings was one session where staff actually showed us overhead images of properties. It wasn't GoggleEarth, but something similar with more up to date images. These were to be used as the stormwater assessment is based on "impervious surface". Especially for residential properties roof footage is the major component. A two story house with 3,500 sqft would likely fall in the 1-2,000 Tier for stormwater purposes. Unless the city is relying completely on Tax Appraisal District records, which do not state one/two/three story. Which the City apparantly does now. What happened to the overhead views? Again, burden of proof on the rate-payer.

While I'm looking into this, one person added a concern on the commercial side. Here we change to billing the owner. Regardless of whether individual businesses in a multi-use property have meters or the whole building is on one water meter, bill goes to the owner. Many owners are now being "stuck" with $100-$500/month fees they cannot pass along to long-term lease holders.

One other beef I have with 11.800: Let's say you have an appeal, filed and in process. In the interim, you pay the rest of the utility bill, but withhold the stormwater fee. This is commonly allowed in property tax cases without foreclosure. Under Sec. 11.808 "Failure to pay promptly shall subject such user to discontinuance of any utility service". Well, it's certainly a hammer, but I would prefer to see such actions move through a Municipal Court action brought by the City against the landowner.

I have to give points to someone for dividing the ordinances. It would be a hard sell to reopen the Tiers structure addressed in Sec 8.1900, don't see that happening. However, there are inequities in the 11.800 language, I suspect unintentional, that can be addressed and amended, and they should be.

I'm not by nature a fan of unfunded mandates, and this is the "poster child" definition for that term. Reality, City has no viable option save to comply. That is covered in Sec 8.1900, I leave quibbles over fairness of the Tiers for the review down the road. The inequities of the billing portion in Sec 11.800 can be re-examined without disturbing the core issue of City's compliance with State and Federal Regulations. It should be.

San Angelo has been surprisingly tolerant of the capital improvements addition to the water bill. People assign responsibility to different sources, but after the Christmas Debacle and a few geysers around town, we are willing to pay for dependable service. A couple of things that helped acceptance was selling people the idea there was a "new sheriff in town", we would manage and maintain the system better, AND the additional billing would have some semblance of fairness to it.

While not free, (there is staff time to consider), tweaking an ordinance by amendment is an inexpensive option compared to losing trust with rate-payers. The Monday Standard-Times article (which dropped off the radar in record time) mentioned there had been about 1,000 calls on the issue. Aside from eating up the City Engineer's time, that's a lot of people with questions, and doesn't count those who shrug in resignation and write the check, mumbling imprecations under their breath. Fairness in billing is essential to trust. Council should look at amending Sec. 11.800.

Storm over storm water rates

Tuesday's Council meeting was a long day, much of it taken up with the storm water program rate structure. I have been following this as closely as I can since the public meetings last March. It ain't perfect, but I like what we have now a whole lot better than what I was looking at in March. I like it better than what was first presented Tuesday morning.

First let me explain "tiers". The original back in March was going to go by straight square footage, each property paying flat 15 cents per. The tiers group properties by size, for instance, tier three commercial is 15001-50,000sq ft. It has right at a quarter of all commercial lots. They use Dairy Queen on Sherwood as an example. There are 4 residential tiers and six non-residential tiers.

On residential, the highest rate will be $5/month, for houses with over 3,000 sq. ft. OF ROOF. In fact if you have a 3200 Sq ft two story and get a tier 4 $5 billing, call and tell them. They have a Google-like system and can check that from the desk and adjust your tier. Over 55% of residences will be in tiers 1 or 2, at $2 and $3 respectively. The bill will go to the owner, it will not be a tack-on to residential water bills. If you rent a house, as I do, the owner gets the bill. Unlike property taxes, this will apply to non-profits, churches, it will apply to vacant buildings, virtually everything except the federal building downtown. Yes, as usual the feds exempt themselves from that which they impose on us. Apartments are in "non-residential", which sounds absurd and accounts for my preference for the term "commercial".

In the commercial tiers, the first three contain 87% of all affected properties. The tier 3 rate is $30/month, pretty close to the average for that tier. Likewise tiers 4 and 5 are very close to the average for their tiers. Then we come to tier 6 over 500,000 sq. ft.: the $500/mo is nowhere close to the average of $1400 they would pay in straight sq. footage billing. How can this be?

Well frankly, tiers 1 and 2 at $7.50 and $15 respectively are getting hosed. Any business at the low end of the first 5 tiers is getting hosed a bit too. How can this be fair? Best answer I can give you is; it really isn't.

Let me fall back to the public hearings in March. I had made comment that there were unmandated capital projects we could live without and in fact, those projects have been scaled back some. As we were walking out I ended up talking to, well, one of the major car dealers in town. He had already computed his sq footage times 15 cents and I was talking to a genuinely frightened man. He told me bluntly that if he got hit with the full sq. footage charge contemplated then, he was out of business. Given the state of the auto industry, I don't think he was exaggerating at all.

There are only 22 tier 6 properties. They include the asphalt intensive businesses of car dealers and Sunset Mall for instance. The city website uses Wal-Mart Supercenter West as an example, and they could probably pay full freight and only marginally raise prices on each of the tens of thousands of items they sell. The sense of Council, was that the tier 6 full freight fee could break a good many tier 6 businesses, with accompanying loss of jobs. Other hand, the higher-than-sq-footage fees for the lower 3 tiers were unlikely to break businesses.

Some public comment before the lunch break, including yours truly, suggested the presented fees for the lower three tiers, the $10, $20, and $50 was too much burden and too much subsidy. After the break, 5 and 6 had gone up, and the first four down. The $10, $20 and $50 ended up as $7.50, $15 and $30. Still a subsidy package, which does not tickle my libertarian soul, but neither does higher unemployment.

The city website has all the numbers, if you care to look. Opening page click Stormwater information, next page click, rate facts and stormwater facts.

Understand, this is not yet a done deal. The $500 for tier 6 is not only way under the average, it is below the minimum in real sq footage for that tier. If you think this is out of line, show up and stand on your hind legs and say so, but time is short.

It has been said, and I would agree, this should have been started many years ago. Now think back 5, 10 years. How many voters would have howled at the moon about unnecessary taxes? Fiscally responsible, yes; but I don't believe it would have been politically possible. Reality now is, we are staring at a short deadline. If we don't have something going by the New Year, it's likely TCEQ and EPA will move us from 305B (watch list) to 303B. Then they just walk in and tell us "You will do X, Y, and Z". They might let us decide how to pay for it. If they're in a good mood, but they seldom are. If you have a better plan, share it with us quickly.