AN ORDINANCE OF THE CITY OF DESOTO MUNICIPAL DRAINAGE UTILITY SYSTEM

PUBLIC HEARING NOTICE

The City Council of the City of DeSoto, Texas will hold a Public Hearing during a Regular Meeting on Tuesday, November 5, 2024, at 6 p.m. in the City Of DeSoto City Council Chambers located at 211 E. Pleasant Run Road, DeSoto, Texas, to hear public opinion regarding the adoption of the following proposed Ordinance to modify the regulations of the current Municipal Drainage Utility System and the rate structure and provisions of the current Municipal Drainage Utility System Fees.

This notice is being published in accordance with the public notice requirements set forth in Subchapter C of Chapter 552, Local Government Code, V.T.C.A. for public hearings. As required by the aforementioned statute, this public notice is being published in a newspaper of general circulation to the residents of the City of DeSoto thirty (30) days or more prior to the date of the public hearing and will be published twice more, for a total of three times, before the scheduled hearing.

All interested persons are encouraged to attend the public hearing and express their opinions on the proposed Ordinance. Council may vote on the proposed Ordinance immediately following the public hearing. State law provides that approval of the proposed Ordinance shall require an affirmative vote of a majority of the members of the City Council.

The building in which the above public hearing will be conducted is wheelchair accessible; spaces for the mobility impaired are available. Any request for sign interpretative services must be made forty-eight hours prior to the time of the meeting.

Arrangements for sign interpretative services may be made by calling the City Secretary at 972/230-9646 or by calling TDD-1-800-RELAYTX (1-800-735-2989).

The entire proposed Ordinance to modify the existing Municipal Drainage Utility System and Municipal Drainage Utility System Fees in the City of DeSoto is provided herewith, in accordance with requirements set forth in Subchapter C, Chapter 552, Local Government Code, V.T.C.A.:

ORDINANCE

AN ORDINANCE OF THE CITY OF DESOTO, TEXAS, AMENDING THE CODE OF ORDINANCES BY AMENDING CHAPTER 13 “UTILITIES” BY REPEALING ARTICLE 13.600 “MUNICIPAL DRAINAGE UTILITY SYSTEM” IN ITS ENTIRETY AND REPLACING IT WITH A NEW ARTICLE 13.600; AND AMENDING APPENDIX A “FEE SCHEDULE” BY REPEALING ARTICLE 23.000 “MUNICIPAL DRAINAGE UTILITY SYSTEM FEES” IN ITS ENTIRETY AND REPLACING IT WITH A NEW ARTICLE 23.000 ESTABLISHING DRAINAGE UTILITY FEES; PROVIDING A REPEALING CLAUSE; PROVIDING A SEVERABILITY CLAUSE; PROVIDING A SAVINGS CLAUSE; PROVIDING A PENALTY CLAUSE OF FINE NOT TO EXCEED THE SUM OF TWO THOUSAND DOLLARS ($2,000.00); AND PROVIDING FOR AN EFFECTIVE DATE.

NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF DESOTO, TEXAS:

SECTION 1. That the City of DeSoto Code of Ordinances is amended by amending Chapter 13 “Utilities” by repealing Article 13.600 “Municipal Drainage Utility System” in its entirety and replacing it with a new Article 13.600, to read as follows:

“CHAPTER 13
UTILITIES
. . .
REPEAL ARTICLE 13.600 IN ITS ENTIRETY AND REPLACE WITH A NEW ARTICLE 13.600, AS FOLLOWS:

ARTICLE 13.600 MUNICIPAL DRAINAGE UTILITY SYSTEM

§ 13.601 Adoption of Act.

(a) The Council finds that notice has been given, and hearings held as required by Section 552.045(c) (Adoption of System; Rules) of the Texas Local Government Code.

(b) The Council makes the findings required by Section 552.045(b) (Adoption of System; Rules) of the Texas Local Government Code.

(c) Chapter 552 (Municipal Utilities), Subchapter C (Municipal Drainage Utility Systems), of the Texas Local Government Code is adopted, and this chapter shall be administered in accordance with its provisions.

(d) The drainage of the City is declared to be a public utility. Existing facilities are incorporated in the drainage utility as permitted by Section 552.046 (Incorporation of Existing Facilities) of the Texas Local Government Code.

§ 13.602 Drainage Service Provided.

The city will provide drainage services for all real property within its boundaries upon payment of the determined drainage charges, as defined in the Act, and excluding certain exempt real property, and that the service, fees, assessments, and charges will be based on nondiscriminatory, reasonable, and equitable terms. The drainage fees established herein shall be for all nonexempt benefited property as defined in the Act within the city’s drainage system. Benefitted property is defined as a developed parcel to which drainage services are made available.

§ 13.603 Billing for Drainage Service.

(a) The city is hereby authorized to bill the drainage charges incurred as a result of the adoption of the Act and the establishment of the municipal drainage utility system thereunder, with its other public utility billings. A drainage fee is imposed upon each developed lot and parcel with impervious area improvements within the city to provide funding for drainage services and facilities provided by the city. The drainage charge shall be separately identified from other public utility billings. The City shall only expend drainage fee revenues to provide drainage services and improvements as defined by the Act.

(b) As further provided in Section 23.000, Municipal Drainage Utility System Fee, the drainage charge shall be based on:

(i) The developed use of the benefitted property; and

(ii) The measured or estimated amount of impervious area or surface on the benefitted property.

(c) For purposes of imposing the drainage fee, all benefited property as provided under this chapter is categorized as “residential property” or “non-residential property:” Non-residential property includes any property that is not described as residential property in the City Code of Ordinance.

§ 13.604 Authority to Levy Drainage Charges.

Upon the passage of this article, the city may levy a schedule of drainage charges upon satisfaction of the procedural requirements provided in the Act.

§ 13.605 Administration of Municipal Drainage Services.

The Development Services Director (“Director”), or designee, shall administer this ordinance, including, but not limited to, enacting any procedures necessary for the administration of the drainage utility fee.

§ 13.606 Exemption Authorized.

The city is authorized to exempt certain entities or persons from all ordinances, resolutions, and rules which the city may adopt from time to time in connection with the adoption of the Act and the establishment of its municipal drainage utility system. Any exemptions to the drainage fees established herein other than the exemptions required by the Act shall be set forth in the municipal drainage utility systems fee schedule.

§ 13.607 Rates.

(a) The rates as provided for in the fee schedule found in the appendix of this code are hereby established and shall be collected through the city’s bill for public utilities pursuant to Chapter 552 (Municipal Utilities), Subchapter C (Municipal Drainage Utility Systems), of the Texas Local Government Code, and other applicable law.

(b) The city council shall, following the adoption of this article, from time to time establish by ordinance a drainage utility system fee schedule for fees which shall be collected through the city’s bill for public utilities pursuant to the Act and other applicable law. There shall be a drainage charge for each non-exempt property on a monthly public utility statement for the city drainage system as set forth in the drainage fee schedule. The city manager, or designee, is authorized to collect such fees in a manner consistent with the city charter, the Act and this article. The drainage fees shall be a separate line item on the public utility statement and shall be clearly identified as a separate charge. Except as otherwise provided herein, the billing, fees and collection procedures shall be consistent with city collection procedures for public utility services provided by the city.

(c) The drainage fees established pursuant to this article will apply to the accounts maintained by the city for public utility services.

(d) All billings, credits, exemptions and other procedures relating to drainage fees established pursuant to this article shall be subject to the provisions of the Act and other applicable law.

(e) A deposit for the drainage services as a precondition to accepting surface flow from benefited property into the city drainage utility system shall not be required. All real property of the city will be provided with drainage utility system service on timely payment of drainage fees established herein.

§ 13.608 Appeals.

(a) Billing and payment disputes for administrative issues relating to the drainage fees shall be subject to appeals procedures used by the city for public utility billing disputes. A person or entity that owns or occupies a benefited property may appeal the drainage fees established herein pursuant to this procedure set forth in this section.

(b) Appeals shall be directed to the “director” for evaluation and determination. An appeal shall be in writing and submitted within thirty (30) days after the public utility billing statement containing the matter to be disputed. The burden of proof shall be on the appellant. During all periods of appeal, the person or entity that owns or occupies the benefited property and/or the account holder shall be responsible for payment of the fees in full.

(c) The “director” shall render a written decision on such appeals within thirty (30) days after receiving a timely written notice of appeal from the person or entity that owns or occupies the benefited property and/or the account holder. The “director” shall deliver a copy of the appeal decision to the person or entity that owns or occupies the benefited property and/or the account holder by U.S. mail to the address of the landowner/account holder according to the most recent records in the possession of the city.

(d) Any person or entity who owns or occupies the benefited property and/or the account holder who disagrees with the decision of the “director” may appeal such decision to the city manager in writing within ten (10) days after receipt of the decision of the “director”. The burden of proof shall be on the appellant. The decision of the city manager shall render a written decision within thirty (30) days after receipt of a timely appeal. The decision of the city manager shall be final.

§ 13.609 Penalties; enforcement.

Failure to pay the drainage fees promptly when due shall subject such user to discontinuance of any public utility services provided by the city, in accordance with the procedures adopted by the city for discontinuance of any city public utility service including water and/or sewer service and other applicable laws. Any drainage charges due hereunder which shall not be paid when due may be recovered in an action at law by the city. The employees of the city drainage services may request an inspection to determine impervious area if initiated by the benefitted property through an appeal, submission of a building permit, or other request to the city. A change in impervious area may result in a change of the drainage utility fee charge.

§ 13.610 No Waiver of Immunity.

This chapter does not imply that a benefitted property will be free from flooding or erosion, and does not create additional duties on the part of the City. This chapter does not waive the City’s immunity under any law.”

SECTION 2. That the City of DeSoto Code of Ordinances is amended by amending Appendix A “Fee Schedule” by a repealing Article 23.000 “Municipal Drainage Utility Fees” in its entirety and replacing it with a new Article 23.000 , to read as follows:

“APPENDIX A
. . .
REPEAL ARTICLE 23.000 IN ITS ENTIRETY AND REPLACE WITH A NEW ARTICLE 23.000, AS FOLLOWS:

ARTICLE 23.000
MUNICIPAL DRAINAGE UTILITY SYSTEM FEES

§ 23.100 Municipal Drainage Utility System Fees.

(a) Drainage Utility Fee. Drainage utility fees shall be charged based on a property’s contribution to the City’s public drainage utility system. The contribution shall be based on the amount of impervious area for the benefitted and non-exempt property. Impervious area is the square footage of a surface that has been compacted or covered with a layer of material so that it is resistant to infiltration by water. An impervious surface includes, but is not limited to, compacted soil with a surface treatment, roof tops, gravel, crushed stone surface, asphalt or concrete pavement, a parking lot, a driveway, a sidewalk or private roadway, a building or other structure, or any surface that changes the natural landscape and increases the flow or amount of stormwater (drainage) runoff.

All rates, billings, credits, exemptions and other procedures relating to this charge shall be subject to the provisions of subchapter C of Chapter 552, Local Government Code, V.T.C.A.

(b) Equivalent Residential Unit “ERU.” The impervious area of a property is measured in Equivalent Residential Units or ERUs. The current ERU for the City of DeSoto is based on three-thousand, four hundred (3,400) square feet of impervious area which is based on the average impervious area of a residential house structure including a garage, driveway and other impervious areas within a typical parcel. A property’s ERU is calculated by dividing the impervious area of the property by 3,400 square feet.

i. The ERU for any multi-family or nonresidential property shall not be less than one (1).
ii. The number of ERUs shall be individually determined by dividing the actual impervious area by 3,400 and rounded up to the nearest whole number.

(c) Monthly Rates. The following rates are hereby established and shall be collected on each benefitted, non-exempt property through the city’s bill for public utilities pursuant to subchapter C of Chapter 552, Texas Local Government Code, V.T.C.A., including, without limitation, section 552.048, and other applicable law:
(see TABLE 1 and
TABLE 2 BELOW)

(i) A monthly base fee shall be applied to the drainage utility account associated with each non-exempt and benefitted property. This fee shall be allocated to drainage utility system administration costs which are divided among all properties equally, regardless of impervious area.

(ii) The rates established above apply to the accounts maintained by the city for public utility services. If no utility meter serves the non-exempt and benefitted property, the City may establish a non-metered utility account using the utility billing system and shall bill the drainage charge to the utility customer for the non-metered utility account.

(d) Senior Citizen Credit. The Senior Citizen credit will be applicable to residential properties in tiers 1, 2 and 3. To receive the Senior Citizen credit, the utility account holder must register the account as a Senior Citizen account through the City’s utility billing department.

(e) Calculation of Drainage Fees for Non-Residential Properties.

(i) Every property owner and city service customer shall be responsible for paying the drainage fee for the benefited property. Such properties are charged monthly based on the amount of impervious area on a parcel of property. Except as otherwise stated in this article, the drainage fee is calculated using the following formula:

Monthly Drainage Fee for Non-Residential Property = [Equivalent residential unit (ERU) × drainage charge] + Base Fee

(ii) A three (3) year phased implementation of drainage fees has been adopted for non-residential properties with a net increase in their monthly fee. Properties with a net
See DeSoto – Page 5
Continued from Page 4

increase will incur a gradual fee increase with one-third (1/3) of the net increase each year for a period of three (3) years, effective at implementation and the start of the next two fiscal years.

(f) State Mandated Exemptions. The following properties shall not be assessed a drainage utility fee, as required by section 552.053, subchapter C of Texas Local Government Code, and section 580.003 of Texas Local Government Code:

i. Property with proper construction and maintenance of a wholly sufficient and privately-owned drainage system;

ii. Property held and maintained in its natural state, until such time that the property is developed and all of the public infrastructure constructed has been accepted by the city for maintenance;

iii. A subdivided lot, until a structure has been built on the lot and: (a) a certificate of occupancy has been issued by the city for non-residential property; or, (b) a Building Final has been issued by the city for residential property;

iv. State property; and

v. Public or private institutions of higher education.

(g) Additional Exemptions. As permitted by Section 552.053, Subchapter C of Texas Local Government Code, and Section 580.003 of the Texas Local Government Code: the city has determined the following property shall not be assessed a drainage utility fee:

i. School Districts and open enrollment charter schools;

ii. City of DeSoto property; and

iii. Dallas County.

(h) Rate Revisions. The city council may review the foregoing schedule of fees at any time and may, by resolution, increase or decrease, or otherwise alter the fee structure upon a determination that such an increase or decrease is warranted.”

SECTION 3. That all provisions of the ordinances of the City of DeSoto in conflict with the provisions of this Ordinance be and the same are hereby, repealed, and all other provisions of the ordinances of the City of DeSoto not in conflict with the provisions of this ordinance shall remain in full force and effect.

SECTION 4. That should any sentence, paragraph, subdivision, clause, phrase or section of this Ordinance be adjudged or held to be unconstitutional, illegal, or invalid, the same shall not affect the validity of this Ordinance as a whole or any part or provision thereof other than the part thereof decided to be unconstitutional, illegal, or invalid.

SECTION 5. An offense committed before the effective date of this ordinance is governed by prior law and the provisions of the Ordinances of the City of DeSoto, as amended, in effect when the offense was committed and the former law is continued in effect for this purpose.

SECTION 6. That any person, firm, or corporation violating any provisions or terms of this Ordinance shall be subject to the same penalty as provided for in the Code of Ordinances of the City of DeSoto, as heretofore amended and upon conviction shall be punished by a fine not exceeding Two Thousand Dollars ($2,000.00) for each offense.

SECTION 7. This Ordinance shall take effect immediately from and after its passage.

IT IS ACCORDINGLY SO ORDAINED.
DULY PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF DESOTO, TEXAS ON THIS THE _____ DAY OF _______________, 2024.

APPROVED:

______________________________
Rachel L. Proctor, Mayor

ATTEST:

_______________________
Alicia Thomas, City Secretary

APPROVED AS TO FORM:

_______________________
Joseph J. Gorfida, Jr., City Attorney

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