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Agenda 10/10/2017 Item #11B10/10/2017 EXECUTIVE SUMMARY Recommendation to provide an update of the current analysis for the establishment of a Stormwater Utility (SWU) and gather any commissioner or public comments. OBJECTIVE: To provide the Board of County Commissioners with an update of the Phase II analysis for the establishment of a Stormwater Utility (SWU). CONSIDERATIONS: On November 18, 2014, the Board of County Commissioners approved Collier County Planning Commission’s recommendation to seek an alternate source of funding to adequately fund Stormwater Management related initiatives and operations (Item 9.A). On November 3, 2015, the Board of County Commissioners discussed initiating an analysis of development of a stormwater utility during the Integrated Water Resources Management Strategy Workshop. The purpose of a stormwater utility feasibility study is to take a detailed look at all current and future stormwater and surface water management needs and evaluate a mechanism that would create a dedicated restricted funding source that would support the stormwater program. On December 8, 2015, at a regular Board of County Commissioners meeting, the Board authorized staff to secure a consultant and begin Phase I of the stormwater utility review and analysis (Item 16.A.20). A notice to proceed was issued on April 19, 2016 for consultant Amec Foster Wheeler Environment & Infrastructure, Inc. to complete the Phase I portion of the project. On September 27, 2016, staff along with Amec Foster Wheeler Environment & Infrastructure, Inc. provided the Board of County Commissioners with an overview of a stormwater utility (Item 11.C). The Board directed the County Manager to proceed with a stormwater utility feasibility study, Phase II, that would evaluate an alternative dedicated funding source for ongoing and future Stormwater Management related initiatives and operations; and to bring the findings of the study back to the Board for future consideration on implementation. On June 27, 2017, the Board of County Commissioners directed the County Manager to proceed with Phase II of the analysis to develop and provide the necessary study and materials required to properly make major policy decisions regarding rate structure, billing methodology, levels of service, and rate study methodology for implementing a stormwater utility for Collier County. A notice to proceed was issued on July 17, 2017 for consultant Stantec Consulting Services, Inc. to complete the Phase II portion of the project. Current stormwater operations, maintenance, planning and capital activities for portions of the secondary and tertiary systems are funded by a General Fund transfer. Stormwater management, operation and maintenance activities are executed through the Road Maintenance Division. Current funding levels cannot adequately support the rehabilitation of existing aging infrastructure and enhancements needed to improve flood control and water quality. Stormwater operations, maintenance, and capital programs benefit all property owners in Collier County. A significant portion of real estate is exempt from property taxes and do not contribute to these needs but still impact the system. A stormwater utility would treat all property owners equally and provides incentives for best management practices and enhanced water quantity and water quality improvements. A stormwater utility determines a user fee rate based on the amount of rainfall -generated stormwater runoff discharging from the property that subsequently enters the County’s stormwater management 10/10/2017 system. Property value is not a factor in fee determination. Implementation also includes issuance of different types of fee credits based on type and age of development. Also taken under consideration are property features that reduce and/or treat runoff and improve stormwater runoff quality. In February, staff 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 Equivalent Residential Unit (ERU), potential credits and considerations. 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 Level of Service with a fee structure that is equitable and fair. FISCAL IMPACT: There is no anticipated fiscal impact to the County as a result of this update. Potential fiscal impacts will be presented in a subsequent meeting in early 2018. LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, raises no legal issue, requires majority vote. -JAK GROWTH MANAGEMENT IMPACT: This item is in accordance with the goals, objectives, and policies of all applicable sections of the Stormwater Management and the Conservation and Coastal Management elements of the Growth Management Plan. RECOMMENDATION: To approve the update of the Phase II analysis for the establishment of a Stormwater Utility (SWU) and gather any commissioner or public comments. Prepared by: Gerald Kurtz, P.E., Principal Project Manager, Capital Project Planning, Impact Fees and Program Management Division, Growth Management Department ATTACHMENT(S) 1. 10 10 17 Stormwater Utility BCC Update (PDF) 10/10/2017 COLLIER COUNTY Board of County Commissioners Item Number: 11.B Doc ID: 3760 Item Summary: Recommendation to provide an update of the current analysis for the establishment of a Stormwater Utility and gather any commissioner or public comments. (Thaddeus Cohen, Department Head, Growth Management Department) Meeting Date: 10/10/2017 Prepared by: Title: Senior Grants and Housing Coordinator – Capital Project Planning, Impact Fees, and Program Management Name: Gino Santabarbara 09/11/2017 12:33 PM Submitted by: Title: Division Director - IF, CPP & PM – Capital Project Planning, Impact Fees, and Program Management Name: Amy Patterson 09/11/2017 12:33 PM Approved By: Review: Capital Project Planning, Impact Fees, and Program Management Amy Patterson Additional Reviewer Completed 09/15/2017 10:49 AM Growth Management Department Judy Puig Level 1 Reviewer Completed 09/19/2017 8:10 AM Growth Management Department James French Deputy Department Head Review Completed 09/19/2017 1:23 PM Growth Management Department Thaddeus Cohen Department Head Review Completed 09/19/2017 5:00 PM Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 09/26/2017 3:22 PM County Attorney's Office Scott Teach Level 3 County Attorney's Office Review Completed 09/29/2017 12:42 PM Budget and Management Office Mark Isackson Additional Reviewer Completed 10/02/2017 9:00 AM County Manager's Office Nick Casalanguida Level 4 County Manager Review Completed 10/04/2017 12:00 PM Board of County Commissioners MaryJo Brock Meeting Pending 10/10/2017 9:00 AM Collier 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 •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 Utility Dedicated 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 Residential 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-residential parcel fees will be based on actual impervious as multiples of ERUs (1.0 ERU) (10.0 ERUs) Residential = Non- Residential 18 What Might the Utility Look Like Property exemptions will be considered Credits 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?