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

Director, City Engineer, and Utilities Operations Manager. Since all positions proposed are currently funded through either the Utilities Department or Public Works Department, there would be no increase in staff positions. CITY OF FORT WALTON BEACH STORMWATER UTILITY IMPLEMENTATION PLAN REPORT TETRA TECH May 28, 2008 13  Proposed Stormwater Management Organizational Structure City Manager Utilities Director Finance Director Public Works Director Utilities Ops Manager ` — — — — — — — I Stormwater - — — — — — — — — City Engineer Collections System Manager Worker Streets Foreman I Utilities Inspector f Heavy Equip Operator Lift Station Mechanic I Service Worker it (2) I Collections System I Street Sweeper Worker (3) Service Worker I ( 1) Service Worker II FIGURE 2 -3 CITY OF FORT WALTON BEACH STORMWATER UTILITY MASTER PLAN PROPOSED STORMWATER MANAGEMENT ORGANIZATIONAL STRUCTURE complex world CLEAR SOLUTIONS' TETRATECH  2.5.3 Estimated Operation and Maintenance (0 & M) Costs The City is required to maintain all drainage -works for City collector and arterial roads used by the general public. This responsibility falls on the City's Public Works Department and carries annual costs associated with personnel, equipment, and materials for operation and maintenance ( 00). Based on information in the City's annual budget and actual cost reports, 0 &M costs have been estimated including personnel, equipment, and materials and are summarized in Table 2 -3. As shown, approximately $367,000 per year will be required to fund the system's 0 &M costs. TABLE 2 -3 CITY OF FORT WALTON BEACH STORMWATER UTILITY IMPLEMENTATION PLAN ESTIMATED OPERATION AND MAINTENANCE COSTS PERSONNEL, EQUIPMENT, AND MATERIALS) Description Annual Cost Personnel (wages and benefits) $ 285, 000 Operating Expenditures $ 82,000 TOTAL $ 367,000 CITY OF FORT WALTON BEACH STORMWATER UTILITY IMPLEMENTATION PLAN REPORT TETRA TECH May 28, 2008 15 2. 6 SUMMARY The City's Stormwater Program includes costs for items currently required to improve drainage LOS throughout the City, for current and upcoming regulatory requirements, and ongoing operation and maintenance of the City's drainage infrastructure. For comparison purposes, we have prepared costs on an annual basis in Table 24 for anticipated programs to be funded by the stormwater utility. TABLE 2 -4 CITY OF FORT WALTON BEACH STORMWATER UTILITY IMPLEMENTATION PLAN ANNUAL STORMWATER UTILITY PROGRAM COSTS Program Name Cost NPDES Phase II 51, 500 CIP (Annual for 10 years)" 685, 000 Personnel and 0 &M 367, 000 SUB -TOTAL 1103,500 Upcoming TMDL Compliance: 334.500** TOTAL 1, 438,000 Assumes financing 50% of City's CIP through 10 -year debt service. Based on estimated upcoming TMDL compliance costs. CITY OF FORT WALTON BEACH STORMWATER UTILITY IMPLEMENTATION PLAN REPORT TETRA TECH May 28, 2008 16 3. 0 CUSTOMER APPORTIONMENT Historically, cities and counties have relied on one of three means to apportion rates to stormwater customers: Equivalent Residential Unit ( ERU); Equivalent Hydraulic Area ( EHA); and Intensity of Development ( ID). Approximately 90% of Florida Stormwater Utilities use a factor associated with impervious area to allocate the costs. The following describes each option and provides advantages and disadvantages associated with each option. 3. 1 RATE MODEL DESCRIPTION, ADVANTAGES AND DISADVANTAGES 3. 1. 1 Equivalent Residential Unit ( ERU) This rate structure fee is based on an average impervious area of a community's single - family residential lots and parcels. The greatest advantage to this method is that it is the simplest method to implement and subsequently, less tedious with lower costs. This method is also the easiest method to explain to the public as part of the public education aspect associated with implementing a new utility. This method is the clear preferred method in the state of Florida. Disadvantages associated with this method include that it only considers impervious area and stormwater runoff from pervious area is ignored. 3. 1. 2 Equivalent Hydraulic Area (EHA) This method is a cost allocation based on the combined impact of measured impervious and pervious areas of a parcel. The advantages include the fact that it accounts for undeveloped /vacant parcels and it is the most equitable method. The disadvantages are that it is tedious to implement in measuring pervious as well as impervious areas and it can be more difficult to explain to the public. 3. 1. 3 Intensity of Development (ID) The cost allocation for ID is based on a percentage of impervious area relative to an entire parrcel's size so that all parcels are charged a fee based on the " intensity of the development" defined as percent of impervious area on a parcel. The advantages are that it accounts for runoff from pervious portions as well as impervious, viewed as more equitable than ERU, and allows for an increase in a parcel' s impervious area without necessarily increasing fees and avoids the subsequent effort by the City to update the database for every parcel increasing impervious area. The disadvantages include the fact that parcels are grouped in broad service fee categories, parcels are not billed in direct proportion to relative runoff, and it involves a tedious implementation to measure pervious and impervious areas from each parcel. CITY OF FORT WALTON BEACH STORMWATER UTILITY IMPLEMENTATION PLAN REPORT TETRA TECH May 28, 2008 17 3.2 Recommended Model For the City of Fort Walton Beach, it is recommended that the City utilize the ERU method based on its ease to implement and explain to the public, lower costs, and its general acceptance as the preferred method across the state of Florida. CITY OF FORT WALTON BEACH STORMWATER UTILITY IMPLEMENTATION PLAN REPORT TETRA TECH May 28, 2008 18 4. 0 MITIGATION CREDIT POLICY AND PROCEDURE The City's Stormwater Utility Program should include provisions allowing customers to mitigate user fees including an option for a customer to not "connect" to the utility. 4. 1 Mitigation Credits Mitigation credits apply to parcels providing on -site, man -made stormwater management facilities. Typically, credits are given to such facilities that are privately implemented and maintained and meet design standards in terms of performance. Mitigation credits reflect the fact that given two identically situated parcels with identical improvements, the parcel with on -site private stormwater treatment facilities will generate less volume of runoff, will generate runoff at a slower rate and/ or improved water quality runoff than the parcel without comparable facilities. When the responsibility for implementation and maintenance falls on the owner, the burden to manage stormwater by the City will be reduced and therefore, typically, a credit is applied. The following language is proposed for the City of Fort Walton Beach for mitigation credits as part of the City's Stormwater Utility system: Stormwater rate credits of up to a maximum fifty (50) percent can be given to parcels of land which demonstrate stormwater control and management facilities which, generate less volume of runoff, generate runoff at a slower rate, or contribute less polluted runoff than a parcel without similar facilties. The calculations of the percentage of credit will be determined by the Director, or his designee(s), based on sound technical principles. Credits will be awarded by the Director, or his designee(s), on a four y- ear basis thus requiring each property owner to reestablish his or her