“I think we need to revisit the rate structure to see that it is fair and equitable,” Cook said this week, adding, “I do believe we are going to adjust the rates.”

City Manager Joyce Wilson made a similar comment two weeks ago. [april 14, 2008 npt background]

The mayor also conceded that the creation of the stormwater utility and the fees it added to El Paso Water Utilities bills that went out this month could pose political problems for City Council members facing re-election next spring.

“I think it has that potential,” he said.

City Council established the district and placed it under the water utility’s Public Service Board to repair and pay for about half of the more than $200 million in damage left behind by the monsoon storms and record floods in August 2006.

When those projects are out of the way, the utility will be responsible for new drainage control projects and the maintenance of facilities that were the responsibility of the city Streets Department before March 1.

The stormwater rates are based on the amount of impervious area on residential and all other properties and are purposefully tilted to put most of the burden on commercial customers.

“That’s who’s screaming right now,” Cook said.

Fees imposed on car dealers’ large asphalt parking lots have added $1,000 or more to those businesses’ monthly water and sewer bills.

The Mack Massey dealership saw its April bill jump by $1,015 to $2,187.

Those businesses have begun organizing and, Cook said, there is talk of legal action against the city.

The mayor, a member of the five-person PSB, said the issue arose at the board’s meeting two weeks ago.

“We mentioned that, that we really need to go back and revisit the amount we need to raise each year to do the projects … and how much we need to maintain the system properly to see if we had under or overestimated our revenues.”

Serious discussions about rates probably won’t start until after a series of public meetings to explain the rates and after the appeals have been heard, Cook said.

Two of those public meetings took place this week. There will be three more:

-- Monday, April 28, Pebble Hills Regional Command Center, 10780 Pebble Hills

-- Tuesday, April 29, City Hall – 10th Floor Conference Room, 2 Civic Center Plaza

-- Wednesday, April 30, Mission Valley Regional Command Center, 9011 Escobar Drive

The stormwater utility fees will go toward new employee salaries, setting the utility up and toward the repayment of bonds that will be sold to finance millions of dollars’ worth of new flood control and drainage projects.

Of the $20.9 million to be raised in the first year:

-- $10.3 million will go for master planning and capital expenses, including equipment. (Capital expenses are expected reach $50 million by 2010.)

-- $8.2 million will go to establishment, maintenance and operation of the stormwater utility, including a staff of 105, 45 of whom were transferred from the city.

-- More than $2 million will go to the preservation of arroyos and green space.

Just under 60 percent of the total will come from commercial, industrial, other local governments, farms and ranches while the rest will come from residential customers.

Here is a breakdown of the monthly stormwater fees being added to PSB bills:

-- Commercial charges are $4.85 for every 2,000 square feet of impervious area.

-- Residential charges are $2.38 a month for a home up to 1,200 square feet, $4.75 for residences of 1,201 to 3,000 square feet and $9.50 for houses over 3,000 square feet in size.

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David Crowder can be reached at dcrowder@epmediagroup.com and 351-0605