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Item #11B STORMWATER MANAGEMENT FACTS FACTS AND HISTORY I have lived in Naples since 1977. We had several events that caused flooding, including the No Name Storm, hurricanes Andrew, Wilma, Irma and most recently tropical storm Gordon. The County has an obligation to manage stormwater. The financial component of stormwater is in the transportation budget. This is because stormwater management primarily affects road flooding. Stormwater management is based on swales, ditches, canals, and drainage areas adjacent to roadways. The County now wants to raise 18 million dollars and tell you that stormwater management is a utility service to your individual developed properties. This is deceptive. The issue with flooding primarily affects our roads and streets. The Stantec Report (p.18) explains how we arrived in this situation: In 2004, the Board of County Commissioner's approved a Stormwater Management Funding Policy which dedicated 0.15 mils of ad valorem solely to the funding of stormwater capital improvement projects. However, during the economic downturn following 2008, the funding levels were redefined by a resolution that would allow the County to fund "up to 0.15 mils per year." As a result of this change in the funding policy, the level of funding for stormwater management in the County in subsequent years ended up being significantly reduced. The County recognized that it needed $13 million/year for Stormwater Management. Instead of fully funding this important component of our community, they cut $7 million from the allocation for the last 7 years: Figure 3.1 - Historical Ad Valorem Funding for Stormwater Management $14 $12 $10 $8 0 V $6 $4 $0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 FISCAL YEAR Page 1 of 18 1 ji J )34i In fact the County reduced funding from 2017 — 2018 for stormwater management by over $1,700,000.00 as shown at page 60 of the 2018 Adopted Budget Summary: Collier County Government Fiscal Year 2018 Adopted Budget Summary of Budget by Fund FY 16/17 FY 17118 Fund Adopted Adopted Budget Fund Title No. Budget Budget Change Stcr %-ater Operations I (324) 26 800 42 000 -95 47% Stc iter Capital I c'.ernent Projects (325) 2 800 _. :75 300 -12 62% These two line items total $6,117,400. This figure should be increased by adding funding allocated by the County found on table 3.10 at the Stantec Report page 22: Table 3.10 - Revenue Pro'ections Expenditure Type by Fund FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 General Fund(001)Incorporated 1,627,000 2,000,000 2,000,000 2,000,000 2,000,000 General Fund(111)Unincorporated 4,268,000 { 4,268,000 4.268,000 4,268,000 4,268,000 Big Cypress Basin 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 . Interest/Miscellaneous 50,000 50,000 50,000 50,000 50,000 Gas Taxes(Road Maintenance) 870,000 870,000 870,000 870,000 870,000 BP/RestoreAct 500,000 1,000.000 1,000,000 1,000,000 Total Annual Revenues $7,815,000 $8,688,000 $9,188,000 $9,188,000 $9,188,000 Table 3.10 uses only annual revenue from the general fund under items 111 and 001 to come up with the $7.8 million dollars. The 2018 Adopted Budget amounts on lines 324 and 325 should be added to that figure resulting in $13,932,300.00 that should be available for stormwater management. You should note in the summary of the Adopted Budget 2018, the County reduced the Stormwater Operations budget by 95%. The County paid $926,800 for Stormwater Operations in 2016-2017 and reduced it to $42,000.00. The County's allocation of$42,000,00 will not even pay for two employees with shovels and a pickup Page 2 of 10 truck to maintain swales and ditches. The County also took almost a million dollars out of Stormwater Capital Improvement Projects. The County needs to return to the funding levels of 2008 and 2009 to fulfill its obligation to the citizens and taxpayers of Collier County. UTILITY SCHEME The County proposes this scheme to raise over $18 million as new money instead of applying the present funding to meet an $18 million target. By raising $18 million with this fee, the County releases $13,832,300.00 to itself. The County takes this money and spends it elsewhere. So what does the County intend to use the money for? The Stantec Report at page 25 says the County needs 8 vacuum trucks, 15 dump trucks, 5 excavators, and some additional equipment. The capital cost of this equipment is 8 million dollars: Table 4.2 -Stormwater Maintenance Enhanced Level of Service Additional Categories of Annual Capital Cost of Maintenance Staffing Additional Burdened Equipment Capital Activity (FTE's) FTE's Staffing Costs Requirements Equipment Storm Sewer Vacuuming 8 Maintenance, Curb Inlet Cleaning 16 8 Equipment $664,000 8 Vac Trucks $4,160,000 Operators Catch Basin Cleaning ` 5 Heavy Equipment Operators, 5 Roadside Swale Crew Leaders, 15 Dump Cleanin 40 15 $1,765,000 Trucks, 5 $3,125,000 9 Maintenance, Excavators 10 Equipment Operators 1 Equipment Street Sweeping 1 $45.000 Operator Alternative Outfall Ditches 1 3 Heavy Excavator,Long Secondary System 3 Equipment $168,000 Reach $1,020,000 Operators Excavator. Bull Dozer Total 60 $2,642,000 (( $8,305,000 *The County has a street sweeper that is currently not utilized and therefore just additional staffing is required to enhance level of service. Page 3 of 10 This is a non-recurring charge. We buy this equipment. We don't have to buy it every year. There is no annual component for the purchase of this equipment. Naturally, we are going to have to pay people to operate the equipment. The staffing estimate is $2.6 million. If the County replaced the $1.7 million that they took out of the Stormwater Operation and Stormwater Projects Capital and Improvements in 2018, there would be a shortfall of less than $1 million. If they returned to funding levels in place 10 years ago, the County would have unrestricted use of over $14 million to apply to Stormwater Management. This is more than enough money to cover the salaries of the people to operate the equipment, and buy the equipment outright. The County wants to create a new funding source for$18 million every year not linked to your taxes. This results in a new bureaucratic organization to assess collect, supervise and generate reports that are clearly not needed at this point. The Stantec report on page 48 has table 7.1 Stormwater Cost of Service: Table 7.1 -Stormwater Cost of Service Function Annual Cost* % of Total Type of Expenditure Customer Service/Admin 500,000 2.21% System-Wide Regulatory/Water Quality 300,000 1.20% System-Wide Engineering/ System Planning 1,200,000 5.72% System-Wide Pipes / Inlets/Catch Basins - O&M 1,900,000 8.59% Local Swales-O&M 3,100,000 14.32% Local Streets-O&M 200,000 0.76% Local Canals-O&M 1,200,000 5.53% Backbone Outfall Ditches/Secondary- O&M 900,000 3.93% Backbone Capital 12,500,000 57.74% Backbone Total $21,800,000 100.00% *Full annual costs, not including annual$1 million from Big Cypress Basin This table is inappropriately labeled "Stormwater Cost of Service" because it contains a Capital Projects component. The Capital Project charge is $12,500,000.00. Without that component, the annual cost of service for the stormwater is $9,300,000.00. Which does not include an additional $1 million being paid by the Big Cypress Basin. As you can see on table 3.6, the budgeted revenues are $8,299,200: Page 4 of 10 . Table 3.6 -Total Historical and Bud eted Revenue Stormwater Revenues Expenditure Type Actual Actual Actual Budget Budget FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 General Fund(001)Incorporated 4,939,343 4,843,790 1,776,764 2,752,000 1,865,800 General Fund(111)Unincorporated 1,300,000 1,050,000 4,011,800 4,172,000 4,267,900 Big Cypress Basin 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 ' Interest/Miscellaneous 4 70,512 148,966 127,389 121,700 153,100 Gas Taxes(Road Maintenance) 858,600 870,300 I 871,100 871,500 870,000* Carry Forward 100,600 122,800 64,900 267,400 143,500 Total Annual Revenues $8,269,055 $8,035,856 $7,851,953 $9,184,600 $8299,200 `Table assumes backfill from road maintenance in FY 2018 budget This shows that the amount needed to meet the projected cost of service is just over$1 million. There is no reason for the County to be charging improved property owners $18 million every year for stormwater management. Finally, the report deals with levels of service and claims some arbitrary industry standard level of service that is greatly increased from what we currently have: Table 4.1 -Stormwater Infrastructure Maintenance Current Level of Service Maintenance Activity Current.Staffing Current Level of Typical Industry (FTE's) Service Standard Storm Sewer Vacuuming 26.7 Year Cycle 5 to 10 Year Cycle Curb Inlet Cleaning 24.7 Year Cycle 4 to 5 Year Cycle 4 Catch Basin Cleaning 37.2 Year Cycle 4 to 5 Year Cycle Hydro Dynamic Units Cleaning 1 Year Cycle Current Level Appropriate Roadside Swale Cleaning 14 56.5 Year Cycle 10 to 15 Year Cycle 30 Day cycle for all Street Sweeping 3 streets.2 week cycle for 2 Week cycle for all high volume primary streets Contract Spraying Inspected Monthly,Spray Current Level Apprapdate as Required Contract Mowing 2 Week cycyclele and 20 day Current Level Appropriate Tree/Vegetation Removal As Required Current Level Appropriate Outfall Ditches I Secondary3 Defined 1.5 and 10 year System digging cycle PuStrumpture, Equipment and Programmed cMaintenance 4 Maintenance Current Level Appropriate The services are stormwater vacuuming, curb inlets cleaning, catch basin cleaning and roadside swale cleaning. If this is read in conjunction with table 4.2, it would seem that once the County gets its 8 vacuum trucks, 15 dump trucks, 5 Page 5 of 10 excavators and additional equipment for $8 million and has funding to pay the operators for 2.6 million dollars, those levels of service may be easily achieved. For the last 7 years the County has underfunded Stormwater Management by over $7 million each year. This means that $49 million has been taken from Stormwater Management. Now the Commissioners want you to pay for a stormwater management system that they failed to fund for 7 years. Stormwater management should be a priority with the County. Funds allocated to stormwater management should not be siphoned off to other pet projects like affordable housing initiatives, beautification, business development and other programs. In addition to not taking responsibly for the entire situation, the County and the Commission are planning to charge you an annual fee of $18 million to extend into the foreseeable future. NOT FAIR AND NOT REALITY BASED How does the County intend to sell this to you? They claim it is a utility. No one believes it's a utility. We all understand that we pay our water, sewer, electric and cable on a monthly basis because these are services delivered directly to our homes and businesses. For the County to claim that they are providing a service to homes and businesses based on stormwater runoff generated by impervious surfaces is false and deceptive. This is an excuse to make us feel like we should pay more money to the County. Resolution No. 2018-71 is the County's definition of Stormwater: (0) If rainfall were applied at a constant rate to an Impervious Area, the Stormwater runoff from such Impervious Area would eventually reach a rate equal to the rate of the rainfall. It is thus fair and reasonable to include 100% of the Impervious Area in determining such property's Stormwater contribution to the Stormwater Management Services. We all live in Collier County. We have hurricanes. Stormwater only happens when Collier County is hit by a significant rain event. The runoff is not generated by normal summer afternoon storms. We know at some point if continuous rain falls on our property, the amount of water falling on the property will equal the amount of water running off the property. This occurs when the underlying property becomes saturated. It doesn't matter if it's impervious or not. All property in Collier County generates this runoff. Page 6 of 10 The scheme to generate money exempts some properties from this calculation. All Collier County Public School property is exempt. All County owned property, vacant land and agricultural land is exempt. We know that all of these properties generate storm water runoff, yet none contribute to pay the "utility fee". The Stantec Report states that your property will be "Benefited Property". Your property will not be benefited by anything other than having passable roads after unusual and significant rainstorm events. The Notice to Property Owner implies that the US Environmental Protection Agency Natural Pollution Discharge Elimination System Stormwater Permitting Program as implemented by the FDEP mandates a dedicated funding source. That is not true. Only the County mandates a dedicated funding source. The Environmental Protection Agency does not want contaminated water discharged into the Gulf of Mexico. The largest contributor to contaminated discharge is agricultural property with pesticide, fungicide and fertilizer in stormwater runoff. Yet agricultural properties bear none of the expense in the scheme to create a separate fee. This is fundamentally unfair to everyone for the following reasons: a. Your property is not individually benefited as a result of the fee. b. The County is not charging anything to agricultural property, governmental property or vacant land. c. Agricultural land constitutes a significant portion of Collier County. d. Many properties have virtually no stormwater runoff, yet the County intends to charge them the fee with only a minor reduction. Many communities were required to form Community Development Districts to address issues of capital infrastructure and maintenance for stormwater management. The residents in these CDD's have already been taxed for both infrastructure and stormwater maintenance within their communities. Those communities retain stormwater in preserve areas and retention lakes. Absent a major hurricane, there will never be stormwater runoff. These communities have less impact on stormwater management system than vacant land. The County still wants to charge most of the fee to every member of the community and commercial property within that community. This substantiates the fact that this is an imaginary rationale for charging fees to property owners. The County does have some capital projects. These capital projects benefit certain areas of the County. The residents in areas benefited by capital projects need to have a special assessment. This will put them in the same situation as homeowners Page 7 of 10 in CommunityDevelopment Districts.e p ment str cts. The assessments will be directly related to the impact their properties have on the stormwater management system. THE FUTURE The County agreed to postpone this until next year. The County reduced the Stormwater Utility Operations budget from $926,000 last year to $42,000 this year. They further reduced this amount to only $10,200 in the 2019 proposed budget because "Major funding source is User Fees": SUMMARY OF CHANGES FROM JUNE WORKSHOP TO THE FY 2019 TENTATIVE BUDGET SUMMARY OF CHANGES FROM JUNE WORKSHOP NET CHANGE TO FUND TITLE/(NUMBER) FUND TOTAL EXPLANATION Stormwater Utility Operations $ (1.630,000)On the revenue side,the transfer Gunn the Stormwater Capital Fund 325 (103) decreased by$1,630,000. On the expense side,Capital Outlay decreased by Major funding source is User Fees $1,630,000 as the expanded(new)vehicles planned for FY19 were relocated to the Motor Pool Capital Fund 523. The same thing occurred regarding Stormwater Capital Improvement Projects: SUMMARY OF CHANGES FROM JUNE WORKSHOP TO THE FY 2019 TENTATIVE BUDGET SUMMARY OF CHANGES FROM JUNE WORKSHOP NET CHANGE TO FUND TITLE/(NUMBER) FUND TOTAL EXPLANATION Stormwater Capital(325) $ - On the expense side,the transfer to the Stormwater Operations Fund(103)was Major funding source is User Fees. decreased by$1,630,000 and the transfer to Motor Pool Capital Recovery Fund (523)increased by the like amount. This adjustment was needed when the vehicles were relocated from the Stormwater Ops Fund(103)to the Motor Pool Fund(5231. Page 8 of 10 Collier County Government Fiscal Year 2019 Tentative Budget Collier County, Florida Fiscal Year 2018/2019 Summary of Budget by Fund FY 17!18 FY 18/19 Fund Adopted Tentative Budget Fund Title No. Budget Budget Change Capital Projects Funds Stormwater Operations (324) 42,000 10200 -75,71% Stormwater Capital Improvement Projects (325) 6,075,300 20,126,500 23128% To summarize: Stormwater Operations 2016-2017 Budget $ 926,000. 2017-2018 Budget $ 42,000. Proposed 2018-2019 Budget $ 10,200. Stormwater Capital Improvement Projects 2016-2017 Budget $ 6,952,800. 2017-2018 Budget $ 6,075,300. Proposed 2018-2019 Budget $ 20,126,500. The increase from $6 million to $20 million is based on charging the utility fee of $18 million. Since this was not passed by the County Commission, the Capital Projects Component will remain unfunded. The trend is clearly to take money from stormwater management both in maintenance and capital projects. Assuming that the County minimally funds stormwater in 2019, they will present us with a crisis situation next year that they created. They will again ask us to charge ourselves user fees to make up for the problem county staff caused by failing to maintain the system. Page 9of10 CONCLUSION The only viable and fair way to address stormwater issues is to return to the 2008 and 2009 funding levels as shown in Figure 3.1 of the Stantec Report: Figure 3.1 - Historical Ad Valorem Funding for Stormwater Management $14 $12 $10 g O $8 a . $2 .44 2008 2009 2010 2011 2012 2013 2014 2015 2016 201 1SCAL YEAR There is no reason why the County cannot return to the level of stormwater funding it maintained in 2008 and 2009. This is a problem with a clear and historic solution. Please contact your commissioners and explain that stormwater management is important. It needs to be funded out of general revenues because it affects and benfits all residents of Collier County by having stormwater draining quickly and efficiently from the roads and highways. Please explain to them that this is not some benefit that is conferred only to the owners of improved property. This is a primary responsibly of county government and not a utility to be paid for by owners of improved property. John �:3looley,J.D. C.S. The Law Offices of John F.Hooley,P.A. 851 Fifth Avenue North,Suite 303 Naples,Florida 34102 Tel:(239)234.2520 Fax:(239)234-2521 Page 10 of 10