Title
Authorize Expenditures and New Positions Funded by the Stormwater Excise Tax Increase for MS4 Permit Compliance (Ordinance S-49965)
Description
Request to authorize the City Manager, or his designee, to add seven new positions to the multi-departmental Stormwater Management Program and to expend funds related to the City's new MS4 permit and associated Stormwater Excise Tax (SET) increase. No General Fund dollars are requested to support this request; funding will be provided by the proposed increase to the SET.
Report
Summary
The City of Phoenix operates a Municipal Separate Storm Sewer System (MS4) via a permit issued under the federal Clean Water Act from the Arizona Department of Environmental Quality (ADEQ). Compliance with the City's MS4 permit requires a multi-departmental effort to manage citywide stormwater quality via the City's Stormwater Management Program (Program).
Generally, the MS4 permit authorizes discharges from the City's stormwater infrastructure into protected surface waters. The City's stormwater infrastructure includes catch basins, storm drains and outfalls that collect and convey stormwater from streets and other public and private surfaces to retention/detention basins and surface water channels throughout the City. ADEQ issued the City a new MS4 permit that became effective July 1, 2021. This new permit requires the expansion of some existing Program elements and the addition of new Program elements.
New and expanded elements of the Program include: a new stormwater post construction control program, a retrofit feasibility study, expanded public outreach requirements, expanded inspection requirements, and expanded reporting and mapping requirements. Non-compliance by the City with the MS4 permit would result in notices of violation and fines from ADEQ and the Environmental Protection Agency. Other cities across the country who have failed to comply with their stormwater permit are operating under a consent decree, a significantly more stringent and inflexible process.
This is the second part of a joint request to increase the stormwater excise tax (23-1540) and obtain approval to expend the funds for MS4 permit compliance activities and resources and add new staff positions to support compliance as funding permits.
Staff evaluated multiple implementation methods for new Program elements and ultimately selected the approach that adds minimal staff for compliance requirements. The proposed SET increase and number of new staff positions reflects that approach. The positions would be phased in over the course of three years to meet permit compliance needs.
See Attachment A for details on the new positions being requested and the attached Stormwater Excise Tax Increase Report (Attachment B) for more detail on other program elements to be funded by the SET increase.
Concurrence/Previous Council Action
The City Council last approved an increase to the SET on April 6, 2010, (Ordinance G-5491) in connection with the prior MS4 permit requirements.
On Feb. 15, 2023, the Transportation, Infrastructure and Planning Subcommittee heard information on the proposed SET increase and on April 18, 2023, information on the proposed SET increase was heard at the Council Policy Session. The proposed SET increase is in front of Council for decision at this June 28, 2023, Formal Council Meeting.
Financial Impact
The estimated cost for the new staff positions for the remainder of Fiscal Year 2023-24 is estimated to be $280,826 and full year costs for Fiscal Year 2024-25 are estimated to be $837,817. Average annual costs of the new and expanded activities covered by the SET increase is $1,960,547. No General Funds are requested to support these staffing and Stormwater Management Program requirements. The SET increase would provide the funding.
Department
Responsible Department
This item is submitted by Deputy City Managers Ginger Spencer and Alan Stephenson, and the Water Services, Planning and Development and Street Transportation departments.