Fort Walton Beach Council agenda — 06-17-08 special agenda — reading text

O W O O W (D O 0 cn C7 CA) W UI N co O J C„ 0) 00 0 n W O N Ma 0> 3: p O O D WOW MN CCDDO W v n CD v O w c n N N A CD W A p 1 co 0 0-< lr\) O l W 0 D N N d7 Ol CD CD ( 0 J Oo I N W N O Q n 1 0 (n 0 N W n X COD N W I N O O Dp C 0-0 CD CD CD 00 Oo O 01) N Op N 0 N N co V c% O O O O N Cn W O OO 4 OW CD V V  CITY COUNCIL SPECIAL MEETING June 17, 2008 Public Hearing Agenda - First Reading Consideration of Ordinance 1768, adding a new chapter 10. 521 " Stormwater Management Utility" to the Code of Ordinances Utilities Director) Agenda Item Number: SP- 3  CITY OF FORT WALTON BEACH MEMORANDUM To: Joyce Shanahan, City Manager From: Sam Wilson, Environmental Specialist Through: John Hofstad, Utilities Director Date: June 12, 2008 Subject: Stormwater Management Utility Ordinance 1768 Background: On August 7, 2007, following a selection process and Council approval from the regular meeting held May 8, a notice to proceed for Engineering /Consulting services for a Stormwater Utility was issued to Tetra Tech Inc. of Destin, Florida. Since that time the City' s Consultant has been gathering information outlined in the approved scope of work. During the January 22, 2008 City Council Workshop "Tetra Tech updated Council on the progress of the Stormwater Utility Study and the future actions necessary to implement a stand -alone stormwater utility. Key progress points stressed during this presentation were: Data collection involving a segment of the residential properties and all of the commercial properties within the City Establishment of the Equivalent Residential Unit ( ERU) as the basis for calculating impervious surface for all properties within the City Development of a Preliminary Stormwater Master Plan Development of a preliminary rate structure and cash flow analysis In late February, the City hosted two public meetings to discuss the merits of a stormwater utility, the environmental benefits of a defined stormwater management program, and the potential financial impacts to customers of the new enterprise activity. These meetings targeted commercial properties and the City' s consultant sent out a total of 80 invitations to the largest parcels with impervious areas in the business community. While few business leaders turned out for the two presentations, the concept was generally supported with little opposition voiced by those in attendance. Based on comments received, this support largely stems from the perceived environmental benefits related to managing stormwater runoff in a coastal community and the fact that mitigation credits would be offered to potentially reduce the customers monthly cost. Public outreach and awareness will continue to play an important role in securing the necessary public support to make this program successful. On June 3, 2008 Tetra Tech presented information regarding the final stages of implementation for a Stormwater Utility in a second City Council Workshop. The City' s consultant touched on key  components of Utility which included development of an Equivalent Residential Unit, the development of a preliminary Stormwater Master Plan, rate structures, cash flow, Federal / State mandates, and a stormwater utility ordinance. Discussion: In -order to develop a stand -alone Stormwater Utility, an ordinance must be adopted. As part of the scope of work, Tetra Tech completed a draft Stormwater Utility ordinance, which was presented in the Stormwater Utility Implementation Plan Report on June 3, 2008 to City Council. Key components of the ordinance consist of the following. Intent and Finding, Stormwater Management Program, Stormwater User Fees, Right of Refusal, Mitigation Credits, Collection Fees, Stormwater Utility Fund, Inspection /Compliance, Conflicts, and Severability. If adopted this ordinance will direct the City Manager to develop and implement a Stormwater Management Program, which will be instituted within the incorporated boundaries of the City to plan, design, construct, maintain, and manage stormwater infrastructure. The objective of the program will be to protect, restore, and maintain and biological integrity of chemical, physical, community waters. The development of a Stormwater Management program for Fort Walton Beach will lead the way in developing cooperative efforts toward compatible and efficient stormwater management programs in adjacent jurisdictions. As part of the Ordinance, mitigation credits will be available for all users. These credits will give property owners the ability to reduce their fees by up to 50% by implementing various engineering techniques to reduce run -off from leaving their properties. These credits are expected to be renewed every four years and help encourage smart development throughout the City. This ordinance outlines the structure of the Stormwater Utility and does not set user fees. The next step in the implementation of a Stormwater Utility will be the second reading of the Ordinance on June 24, 2008, and then the Stormwater Rate Resolution will be presented to council some time in August. If adopted, the citizens and business owners can expect the stormwater fee to appear on their regular utilities bill starting with October 1, 2008 billing cycle. In summary, Federal and State regulations will require a substantial expenditure by the City over the next several years. Current revenue sources are significantly insufficient and grant funding is minimal or unavailable. Attempts to combine efforts through a regional stormwater utility have garnered little support and the City must now address its stormwater infrastructure needs internally without outside support. With the anticipated reduction in General Fund revenues, the City must find creative ways to reduce annual expenditures while maintaining the same high level of service in the community. If the Stormwater Utility is successful, staff intends to offer a substantial reduction in the General Fund budget, without increasing manpower or decreasing the current level of service. Recommendation: Staff recommends Council consideration for adoption of Ordinance 1768 " Stormwater Management Utility." If approved on first reading, Ordinance 1768 will be brought again before Council on June h 24` for second reading and final adoption. K  Submitted Bv: Samuel O. Wilson N vironmental Specialist Date Reviewed and onetff-. John Hofstad,,I/ tihties Director Date Reviewed and Concur: C' Brandy "O unker, Finance Director Dale Reviewed and Concur: J yce anahan, City Manager Date Attachments: 1. Stormwater Management Utility Ordinance 1768 2. City Attorney Concurrence Email Dated 06 -11 -08 3. Stakeholders Invitation Letter 4. Stakeholders Mailing List 5. Stakeholders Meeting Sign -In Sheet 6. Staff Report Dated May 28, 2008 7. PowerPoint Presentation presented June 3, 2008 3  I ORDINANCE NO. 1768 2 3 4 AN ORDINANCE OF THE CITY OF FORT WALTON BEACH, FLORIDA; ADDING A 5 NEW CHAPTER 10. 521 ENTITLED " STORMWATER MANAGEMENT UTILITY" TO 6 THE CODE OF ORDINANCES; MAKING FINDINGS OF FACTS AND PURPOSE; 7 AUTHORIZING A STORMWATER MANAGEMENT PROGRAM; ESTABLISHING 8 REGULATIONS FOR CONTRIBUTIONS OF STORMWATER RUNOFF; 9 AUTHORIZING ESTABLISHMENT OF STORMWATER UTILITY USER FEES AND 10 COLLECTIONS; AUTHORIZING CERTAIN PROPERTY OWNERS TO REFUSE 11 SERVICE; AUTHORIZING ESTABLISHMENT OF CERTAIN CREDITS FOR