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Backup Documents 10/10/2017 Item #11BCollier County Board of County Commissioners Stormwater Utility Program Phase II –Update to BCC Presentation: October 10, 2017 A Brief History… 2 The Board of Commissioners discussed the benefits of a Stormwater Utility at an Integrated Water Management Workshop and authorized a Phase I study –November/December 2015 Information from the Phase I study was presented and the Board of Commissioners gave further direction to proceed with a Phase II study, Rate analysis –September 2016 Stantec was engaged to bring forward a Rate Study and to help address key questions related to the a Stormwater Utility for Collier County –July 2017 Why the County manages stormwater? 3 Flood Control / Property Protection Maintenance of the stormwater system to protect individual and personal property Ensure roadways are accessible Water Quality Stormwater management is essential to protect natural environment (local water ways) Regulatory Requirements The County’s stormwater system discharges are subject to Clean Water Act County is required perform stormwater management activities to comply with stormwater discharge permit Why the County manages stormwater? (cont’d) 4 Collier County GMP Stormwater Management Sub-element states “The objective of stormwater management is to develop a combination of techniques which provide for adequate pollutant removal and flood protection in the most economical manner.” It is not a question of ‘Do we have a Stormwater Program?’ but rather; WHAT is our program, and; HOW is it best funded? An Overview of your System 5 Currently, the Stormwater System that is managed and maintained by Collier County includes: •122+ Miles of Canals in addition to over 170+ Miles of Canals Maintained by SFWMD •372+ Miles of Storm Sewer Pipes to be cleaned and maintained •687+ Miles of Roadside Swales •648 Centerline Curb Miles of streets to be swept •50,000 Tons of Storm debris collected annually •6,000+ curb inlets to be cleaned •53 Hydrodynamic Separators •65 Major Stormwater Control Structures •Other responsibilities: •Aquatic Weed Control •Vegetation Removal •Weir Maintenance •Mowing +There are still areas of the county that are not digitized into the database so those are not accounted for in these numbers Who pays for all of this? 6 Answer: Collier County Tax Payers •$1M from The Big Cypress Basin (source is ad valorem taxes) •$±7M from General Fund Revenues, plus grant funds where available. System Challenges 7 •Aging Infrastructure •Currently Experiencing failures (Haldeman Creek) •Funding reductions due to the recession •Failure of key system elements during a storm could be catastrophic •Future water quality standards may be more stringent, requiring more treatment •Better maintenance will extend the life of the system and save money over time Maintenance Challenges 8 •Unable to keep up with the demand for service •Current program is reactive versus proactive. Complaint/Crisis based. •Being more proactive could save money (Mockingbird Lake) •Better Maintenance equals faster recovery after a significant event •Residents seem to be asking for a better Level of Service Example of Current System Maintenance Maintenance Activity Storm Sewer Vacuuming Curb Inlet Cleaning Catch Basin Cleaning Roadside Swale Cleaning Current Pace to Address Entire County 27 Years 25 Years 37 Years 57 Years Typical Industry Standard 7.5 Years 5 Years 5 Years 12.5 Years 9 10 What is a Stormwater Utility An approach to organizing and funding stormwater management with dedicated revenues generated from user fees based on use of the stormwater system. County Utilities Service Provided Funding Approach Water Drinking Water Water Fees Sewer Wastewater Collection/Disposal Sewer Fees Solid Waste Trash Collection/Disposal Solid Waste Fees Stormwater Stormwater Management Property Taxes Stormwater Fees 11 What are the benefits of a stormwater utility? Stormwater UtilityDedicated Stable Funding Fair and Equitable Transparent and Accountable Needs Based Dedicated Stable Funding Provides Less costly proactive management of the system Long-term strategic and coordinated planning Ability to access state, federal and local grants Ability to coordinate efforts with other utilities (water, sewer) reducing costs and community disruptions (streets only torn up once) Naples Park Utility and Stormwater Improvement Project West Goodlette Frank Road Area Stormwater and Sewer Improvement Project Lely Neighborhood Utility and Stormwater Improvement Project Naples Manor Utility and Stormwater Improvement Project Golden Gate City Stormwater Improvement Project 12 Fair and Equitable A stormwater fee reflects the cost of providing a service in a fair and equitable manner Fees are proportionate to the use of and contributions to the stormwater system Reflect intensity of land development Ability to recognize onsite stormwater management 13 14 Current Funding Approach Property A Property B Impervious Area 0.15 Acre 1.00 Acre Runoff 1” Storm Event 3,900 gallons 26,000 gallons Taxable Value $350,000 $350,000 Properties A and B have dramatically different impacts on the stormwater system but currently fund the system at the same level Increasing Impervious Surface = Increasing Runoff Generated Every dollar collected in stormwater fees must be used exclusively for stormwater management Provides transparency within the community Allows for evaluation of performance of stormwater management Level of fees are based on needs of the system Evaluated annually as part of budget process Ability to adjust as needs of system change Transparent and Accountable / Needs Based 15 Who Stormwater utility would apply to parcels in the unincorporated areas of the County What Fee would be based on impervious area on property as identified in Property Appraisers database How Fee would show up as a non-Ad Valorem fee on the property tax bill (just like solid waste fee) When If approved, fee would be included in 2019 tax bill What Might the Utility Look Like 16 What Might the Utility Look Like Single Family parcel fees likely placed into tiers based on impervious area Average Impervious (1.0 ERU) Below Average (0.5 ERU) Above Average (1.5 ERUs) 500 -3,000 sq. ft. impervious area 3,000 -6,000 sq. ft. impervious area Over 6,000 sq. ft. impervious area Purely An Example To Be Developed 17 What Might the Utility Look Like Non-Single Family parcel fees will be based on actual impervious as multiples of ERUs (1.0 ERU)(10.0 ERUs) Single Family = Non-Single Family 18 What Might the Utility Look Like Property exemptions will be considered Credits/Incentives will be offered for parcels with qualifying onsite stormwater management 19 Florida Stormwater Utility Comparisons Locality Annual Stormwater Fee Population Revenues Per Capita Revenues City of Naples $156.72 22,000 $5,000,000 $227 Charlotte $128.64 160,000 $5,000,000 $31 Pinellas $117.74 344,000 $20,000,000 $52 Sarasota $90.65 390,000 $19,000,000 $49 Collier -357,000 $7,000,000 $20 20 Estimated Level of Fees for Collier County Level of Service Range of Annual Stormwater Fee (per ERU)Annual Revenues Current Level of Service, no increase in Maintenance $45 to $55 ~$8,000,000 Current Level of Service + Improved System Maintenance $60 to $70 ~$12,000,000 Current Level of Service + Improved System Maintenance + CIP items $75 to $85 ~$15,000,000 Current Level of Service + Improved System Maintenance + Unfunded CIP items $90 to $100 ~$18,000,000 Current Level of Service + Improved System Maintenance + All Capital Projects $105 to $125 ~$22,000,000 Range of Monthly Stormwater Fee (per ERU) Up to $5.00 Up to $6.00 Up to $7.00 Up to $8.50 Up to $10.50 21 Schedule Going Forward 22 Stormwater Utility Program -Phase II July Aug Sept Oct Nov Dec Jan Feb Data Collection Evaluate Revenue Requirements, Rate Structure, etc. Prepare Preliminary Budget (LOS Analysis) Review and Evaluation of Billing and Collection Alternatives Public Engagement Program Community Meetings **** Community Survey **** Project Website **** Initial Findings Report Detailed Cost of Service Analysis and Rate Development Develop Final Strategy and Work Plan Prepare and Present Final Report What to expect In February, we will return with a full report that will: Provide a full and complete rate study, identifying benefits and challenges in more detail, including the basis for an ERU, potential credits and considerations, etc. Share with the BCC the information gathered through the Public Engagement Program Provide a menu of options that allow the BCC to set a specific LOS with a fee structure that is equitable and fair. 23 Questions? Backup Slides Historical Ad Valorem SW Funding 26 $13.33 $13.06 $10.41 $6.05 $6.97 $5.78 $6.03 $5.68 $5.56 $6.80 $0 $2 $4 $6 $8 $10 $12 $14 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017MILLIONS FISCAL YEAR Vacant Parcels 27 How should vacant (undeveloped) parcels be handled? Policy level decision for BCC •Fractional stormwater fee could be applied to vacant parcels •Vacant parcels could be excluded Our analysis has conservatively assumed that vacant parcels are excluded Include •Widens pool of contributors •Allocates costs associated with general benefits of stormwater management (water quality, ability to access property) Exclude •Simplifies fee structure and administration •Enhances equity (impervious area only) •Links use of system with fee (in some cases vacant parcels may not be served by stormwater system) 118 z 0 'CD a 3 rn CO D -< r CD • IQ mr c CD -< ov M WcCD � ID _ o Q cz c(l r m K r- -I 0 Al r--. 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