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Regular City Council Meeting Monday,May 5, 2014 Page 16 Credits: Would be eligible on the areas being captured, not total property area,but not eligible on permitted or required practices Property Owner Responsibility: Must maintain and certify the project is still func- tioning as designed Mr. Culver noted that,with existing storm water credit, residential properties were exempt and this proposed program allowed for at least some recognition for them for pursuing environmental stewardship. Mr. Culver opined that non-residential properties would be the most likely entities applying for credits, and reviewed the proposed program as detailed in Attachment A (page 2). Mr. Culver noted that one commercial entity,NuStar, had approached the City for credits, and used their parcels as an example, including existing berming and storm water ponds in a corner of their property handling much of their site. If the parcel was to be eligible for credits under the new program, Mr. Culver advised that they could experience an approximate annual savings of$9,500 for their 51.4 acre parcel. Mr. Culver advised that only two parcels in the City were now receiving credits under the existing program; and he noted that he was unsure of when they went into place, as he was unable to find documentation. However, Mr. Culver advised that he was aware that there was no current requirement for them to be certified or recertified to ensure the operations were running correctly, even though they were receiving a credit of $86,935.24. Mr. Culver suggested, at a minimum, they should be required to be recertified and credits recalculated whether or not a new policy was put into place. If the new program was implemented at this time, Mr. Culver advised that he an- ticipated an $11,000 reduction in revenue for 2014, if the anticipated 5% of all residential units applied for and received a credit, there could potentially be a 50% reduction in storm water revenues. If twenty large parcel businesses applied for and received full credit, Mr. Culver advised projections were that a 75%reduction in fees would be realized; with the total revenue loss equal to approximately $100,000, or 6.7% of 2014 storm water fee utility fee revenue. Mr. Culver noted that this reduction in revenue would be somewhat offset by the reduction in storm water runoff into the system, and long-term capital expenditure savings and benefits. Mr. Culver noted that typically credits wouldn't necessarily pay for the cost of improvements over a twenty-year span,but commercial parcels would see more benefit than residential properties, as they would also be imple- menting more costly mitigation efforts. Based on the current program, Mr. Culver advised that the current 1984 storm wa- ter credit allowed up to a 100% storm water credit, with single-family and duplex residential properties exempt from any credit. Mr. Culver noted that the current program was apparently established shortly after the original storm water utility