Fort Walton Beach Council agenda — 06-03-08 workshop agenda — reading text

CITY OF FORT WALTON BEACH City Council Workshop Meeting Agenda - June 3, 2008 - 5 :30 P.M. City Council Chambers 107 Miracle Strip Parkway, SE Fort Walton Beach, FL 32548 CALL TO ORDER PLEDGE OF ALLEGIANCE Mayor Anderson APPROVAL OF AGENDA GENERAL PUBLIC 1. General Public on items of City business. ( No Backup) WORKSHOP AGENDA 2. Discussion regarding the development of a Stormwater Utility. ( Utilities Director) ( See Backup) 3. Discussion regarding the development of a Fire Assessment Fee. ( Fire Chief, Budget & Grants Manager) See Backup) ADJOURN Any person who decides to appeal any decision made with respect to any matter at this meeting will need a record of the proceedings, and for such purpose may need to ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based. (FS286.0105). The City of Fort Walton Beach adheres to the American with Disabilities Act and will make reasonable modifications for access to this meeting upon request. Please call City Clerk Helen Spencer at 850 -833- 9509 to make a request. For Hearing Impaired dial the City Hall TDD # 850 -833 -9925 or 1- 800 -955 -8771 TDD) or 1 - 800 -955 -8770 ( Voice). Requests must be received at least 48 hours in advance of the meeting in order to allow the City time to provide requested service.  CITY COUNCIL WORKSHOP June 3, 2008 Workshop Agenda General Public Agenda Item Number: WA- 1  CITY COUNCIL WORKSHOP June 3, 2008 Workshop Agenda Discussion regarding the development of a Stormwater Utility Utilities Director) Agenda Item Number: WA- 2  CITY OF FORT WALTON BEACH MEMORANDUM To: Joyce Shanahan, City Manager From: Sam Wilson, Environmental Specialist Through: John Hofstad, Utilities Director Date: May 28, 2007 Subject: Stormwater Utility Implementation Plan Background: Since 1937, when Fort Walton Beach was chartered as a municipality, the area has seen great changes to its natural landscape. With these changes the need for stormwater management has evolved. Over the past several years, the City has developed an extensive inventory of stormwater infrastructure, which includes: 34 miles of underground stormwater pipe, 61 outfalls to a receiving body of water, 11 stormwater retention ponds, three ( 3) miles of ditches and streams, and over 1, 300 curb and surface inlets. This infrastructure is in place to collect and convey stormwater runoff and to protect the property of the 20,000 plus residents of Fort Walton Beach. The stormwater infrastructure, some of which was originally installed in the 1930s, networks through 29 local drainage basins that cover more than 4,789 acres ( 7. 5 square miles). The need for maintenance, rehabilitation, and new construction is a costly endeavor, especially for an aging stormwater system. Along with maintenance and infrastructure needs, regulations placed on water quality by State and Federal entities have increased the need for funding. According to the National Pollutant Discharge Elimination System ( NPDES), enforced by the Florida Department of Environmental Protection FDEP), the City has five ( 5) years to implement a multitude of Best Management Practices ( BMPs). The requirements of the NPDES program put pressure on a budget that is already strained by other programs. The City of Fort Walton Beach has reached a point, through aging infrastructure and regulations, where additional means to generate revenue, specifically for stormwater needs, are required. In June of 2003, staff prepared a preliminary report showing the need for a Stormwater Implementation Plan. The Report concluded that serious consideration should be given to establishing a stormwater utility based on water quality, flooding, and regulatory issues. Key elements of the Report included stormwater program requirements, control measures, best management practices, stormwater results, stormwater implementation utility survey utility methodology, and organizational responsibilities. The milestone schedule that follows highlights the various actions taken to develop a stormwater utility for the City of Fort Walton Beach: FY 2004/ 05 CIP ( # 5220 Stormwater Management Study) — $65,000 budgeted and approved by Council October 2005 Okaloosa County, who suggested a collaborative stormwater management approach between the County and the municipalities, shifted away from the Stormwater utility approach and pursued a sales tax increase to fund Stormwater and road improvements October 2005 Through coordination with the County, a one -cent sales tax idea was developed October 2005 City of FWB CIP ( #5220) placed on hold, waiting on outcome for one -cent sales tax referendum September 2006 Voter Referendum /one -cent sales tax defeated October 2006 Staff directed to reactivate CIP # 5220 January 2007 Staff issued Request for Proposal (RFP) for Stormwater Utility Study February 2007 Staff received six sealed proposals for RFP February 2007 Five ( 5) member selection committee scored and ranked firms May 2007 Staff prepared and presented Stormwater presentation at City Council Workshop May 2007 City Council approved contract award for Engineering /Consulting services to develop a Stormwater Utility Study to top ranked firm August 2007 Notice to proceed for Engineering /Consulting services for a Stormwater Utility Study was issued to Tetra Tech Inc. Discussion: During the January 22, 2008 City Council Workshop, the City's consultant, 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 involving a segment collection 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 Since the initial workshop presentation, the City's consultant has concentrated on the remaining elements of Stormwater utility implementation. The remainder of this report details these efforts and provides direction on the next steps towards full implementation should Council desire to pursue the program. 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 2 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. As referenced in the Interim Draft Implementation Plan prepared by Tetra Tech, the City is facing many hurdles as it looks for creative and financially feasible ways to manage its critical stormwater infrastructure. The NPDES program regulated by the FDEP is yet another unfunded mandate that will require an enormous capital commitment from the City over the next several years. As the City enters its next 5 -year permitting cycle, new requirements for Total Maximum Daily Loads ( TMDL) will limit the level of pollutants transported with stormwater that outfall into area receiving waters. Updated Best Management Practices ( BMPs) such as stormwater separators, larger and better designed stormwater retention /detention facilities, improved conveyance systems, and streambank restoration will be required to ensure these pollutants are captured prior to entering our area waters. As outlined in the January workshop, the trend nationally has moved towards development of a stand -alone Stormwater Utility in an effort to manage stormwater infrastructure as a separate enterprise activity. Stormwater management is widely being viewed as another governmental service not unlike potable water and sewage treatment. In comparison to drinking water systems and sewage treatment systems, stormwater is now tightly regulated and a service that all members of the community benefit from. However, the infrastructure was generally ignored until the development of the NPDES program nationally. The City's infrastructure is no different. Many segments of our stormwater conveyance system date back to the 1950' s and 1960' s. Minimal design requirements during this time period and substandard construction materials such as corrugated metal pipe ( CMP) have rendered portions of the stormwater infrastructure obsolete and inadequate. Coupled with the construction activity over the past few decades and the resulting increase in impervious surface, much of the City's stormwater infrastructure is insufficient for handling even moderate storm events. Currently, several million dollars in immediate needs have been identified with very little Federal and State dollars available through grant programs. 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. Complicating this effort is the recent passage of Amendment 1 in the State of Florida. With the anticipated reduction in