Agenda 02/26/2019 Item #11A02/26/2019
EXECUTIVE SUMMARY
Recommendation to approve staff’s recommendation to continue moving forward with
implementing a Limited Stormwater Utility Fee to fund operations and maintenance of the
County’s Stormwater Management System, for future consideration by the Board of County
Commissioners.
OBJECTIVE: Provide staff with direction in order to proceeded with budgeting and funding the
Operations, Maintenance and Capital needs of the County Stormwater Management System.
CONSIDERATIONS: On September 6, 2018, the Board of County Commissioners (Board) directed that
the Stormwater Utility Fee adoption be continued for one year to allow greater public input and evaluate
potential adjusts to the parameters of the fee. Two subsequent presentations were made to the Board
(October 23, 2018, Item 11G and November 13, 2018, Item 11B) on the status of the Stormwater Utility,
further information related to public input/comments, funding levels and potential Stormwater Utility Fee
options. These presentations outlined the requirements and timeframes to implement a Stormwater Utility
in FY 20.
Arising from the November 13, 2018 presentation, the Board directed that the matter of Stormwater
funding, including the Stormwater Utility concept, be assigned to the Productivity Committee for their
review and development of options to address the ongoing funding needs of the County Stormwater
Management System. To that end, staff has been working with key stakeholders, outside counsel, and the
Productivity Committee to develop a suite of potential options.
Through this review, staff has developed a recommendation that provides necessary funding for the
critical operations and maintenance of the Stormwater Management System that is less impactful and
generally more acceptable than the original Stormwater Utility proposal, and still provides a stable,
dedicated funding source for these activities.
Staff is recommending continuing to move forward with implementing a Limited Stormwater Utility Fee
for Operations and Maintenance activities. Staff has been working with outside counsel to develop a
preliminary fee structure within specified legal parameters. Upon receiving further Board direction, staff
will finalize the calculations in order to move forward through the adoption process required by Florida
Statutes. Several additional public hearings are required before the fee can be adopted and implemented.
In addition, staff will continue to work with the public and stakeholders to discuss and identify potential
concerns and issues. While all parties do not agree on what is the best mechanism to fund Stormwater
Management functions, all parties that have been a part of the discussion agree that there is a significant
need to properly fund Stormwater Management activities.
Preliminary details of the Limited Stormwater Utility Fee are as follows:
• Unincorporated Area
• Single fee for condo units
• Single fee for residential parcels
• Commercial parcels: ERU based, tiered, with maximum cap number of ERUs
• Revenues generated applied to Operations & Maintenance
• Capital Projects would require continued funding from Property Taxes
• Continues to rely on impervious area calculations as a starting basis for the fee to preserve legal
defensibility
• Provides simplified structure, without complicated credit programs
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Estimated fee ranges are as follows:
Parcel Type Annual Fee Monthly Fee
Residential (parcel) $60 - $75 $5.00 - $6.25
Condominium (unit) $39 - $51 $3.25 - $4.25
Commercial (parcel) $60 - $1,200 $5 - $100
Based on the preliminary fee ranges above, revenue projections provide estimated funding of
approximately $8.4 - $8.6 million to be dedicated and restricted to Stormwater activities to move towards
achieving the Industry Standard Level of Service that was supported by the Board.
Therefore, staff’s recommendation, as detailed above, is to move forward with implementing a Limited
Stormwater Utility Fees for Stormwater Management Operations and Maintenance, not to exceed the
maximum of the ranges above.
If the Board accepts staff’s recommendation, the next steps in the process include continued public
outreach and finalization of the fee structure to present a final recommendation and the required
Preliminary Rate Resolution to the Board in April or early May. The remaining steps of the Statutory
process follow the decision of the Board on the adoption of the Preliminary Rate Resolution.
PRODUCTIVITY COMMITTEE REVIEW: In accordance with Board direction, the Productivity
Committee met and discussed the Stormwater Utility Fee at 4 meetings:
• December 13, 2018
• January 10, 2019
• January 29, 2019
• February 7, 2019
The Committee discussed the Stormwater Utility Fee as it was presented to the Board at the September 6,
2018 Board meeting, a limited fee to address maintenance, Ad Valorem funding, and a Franchise Fee
option. Staff shared the Operations and Maintenance and Capital needs to achieve the industry standard as
adopted by the Board. At the last meeting the Productivity Committee arrived at their recommendation t o
the Board. The Committee felt that it was necessary to allocate the appropriate level of funding to at least
address the maintenance of the stormwater system.
The Committee showed a preference for a dedicated funding source and felt that a Stormwater Utility Fee
was the most effective method but felt that more analysis should be done over the next year. With the
implementation of the Infrastructure Sales Surtax the Committee felt that it was too early to tell what the
impacts would be upon commercial establishments. The Committee was also hesitant to recommend any
long-term funding plan that did not result in dedicated funding concerned that there would be nothing
preventing future Boards from reallocating funding to other projects.
The Committee agreed that they would like to see the County dedicate a .15 mils equivalent
(approximately $12M/yr.) for Fiscal Year 2020 to fund the Stormwater Maintenance as well as a portion
of the Stormwater Capital program. During the upcoming year, allow the Productivit y Committee and
staff to continue to work toward developing/refining a Stormwater Utility Fee. Staff should consider the
impacts of the Infrastructure Sales Surtax on local businesses. Other Considerations are to implement a
Franchise Fee at approximately 5.9% specifically for stormwater maintenance. Capital projects would
require funding from property taxes/other sources.
FISCAL IMPACT: The current level of funding from the General Fund (001) and Unincorporated Area
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General Fund (111) is not sufficient to achieve an expanded level of Stormwater Capital and Maintenance
funding consistent with industry standards. Without implementing a dedicated Stormwater Assessment,
some level of capital financing, in conjunction with increasing General Fund (001) and Unincorporated
Area General Fund (111) maintenance dollars, will be required to advance the program beyond the
current, limited “pay go” standard.
If a Stormwater Utility Fee is implemented under the parameters above, the dedicated funds would be
used for the Operations and Maintenance of the Stormwater Management System, thereby providing
adequate funding to ultimately achieve and maintain industry standards. The Stormwater Capital program
would continue to be funded by the General Fund (001) and Unincorporated Area General Fund (111)
with the possibility to utilize some level of capital financing to augment the funding and move needed
projects forward.
GROWTH MANAGEMENT IMPACT: The proposed recommendation, as well as other options
considered, would provide additional Stormwater funding to further the goals, objectives and policies of
the Stormwater Management Sub-Element of the Collier County Growth Management Plan.
LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney and requires
majority vote for approval. Legal review of the fee will need to await staff’s ultimate proposal. -JAK
RECOMMENDATION: To approve staff’s recommendation to move forward with implementing a
Limited Stormwater Utility Fee, with fee ranges not to exceed those detailed above, to fund Operations
and Maintenance of the County’s Stormwater Management System, for future consideration by the Board
of County Commissioners.
Prepared by: Geoff Willig, Operations Analyst for the County Manager's Office
Amy Patterson, Director, GMD Capital Projects Planning
ATTACHMENT(S)
1. Stormwater Utility Update 02-26-19 revised 2 (PPTX)
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COLLIER COUNTY
Board of County Commissioners
Item Number: 11.A
Doc ID: 8081
Item Summary: Recommendation to approve staff’s recommendation to continue moving forward
with implementing a Limited Stormwater Utility Fee to fund operations and maintenance of the County’s
Stormwater Management System, for future consideration by the Board of County Commissioners. (Amy
Patterson, GMP Capital Projects Planning Director) (This is a companion to Agenda item 9.B)
Meeting Date: 02/26/2019
Prepared by:
Title: Operations Analyst – County Manager's Office
Name: Geoffrey Willig
02/19/2019 5:26 PM
Submitted by:
Title: County Manager – County Manager's Office
Name: Leo E. Ochs
02/19/2019 5:26 PM
Approved By:
Review:
Capital Project Planning, Impact Fees, and Program Management Amy Patterson Additional Reviewer Completed 02/20/2019 2:19 PM
Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 02/20/2019 2:22 PM
County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 02/20/2019 2:42 PM
Office of Management and Budget Susan Usher Additional Reviewer Completed 02/20/2019 3:47 PM
County Manager's Office Nick Casalanguida Level 4 County Manager Review Completed 02/20/2019 4:05 PM
Board of County Commissioners MaryJo Brock Meeting Pending 02/26/2019 9:00 AM
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Stormwater Funding Options
February 26, 2019
11.A.1
Packet Pg. 200 Attachment: Stormwater Utility Update 02-26-19 revised 2 (8081 : Stormwater Utility Funding)
Guiding Principals
Proactive Maintenance
•Proactive pipe replacement project was executed on a portion
of the Mockingbird Lake stormwater outfall
ü Cost: $163/ft. of HDPE pipe replacement
•One month prior, an adjacent section of the same pipe failed
under Ridge Drive. Road was closed, Mockingbird Lake
overflowed causing significant street and yard flooding.
ü Cost: $1920/ft. of pipe replacement + $40k for emergency
pumping
•Reactive maintenance costs were over 10 times cost of
proactive maintenance
Stormwater Utility: Planning For Success
2
11.A.1
Packet Pg. 201 Attachment: Stormwater Utility Update 02-26-19 revised 2 (8081 : Stormwater Utility Funding)
Current System Maintenance
Typical Industry
Standard
7.5 Years
5 Y ears
5 Y ears
12.5 Years
Maintenance
Activity
Storm Sewer
Va cuuming
Curb Inlet
Cleaning
Catch Basin
Cleaning
Roadside Swale
Cleaning
Current Pace to
Address Entire
County
27 Years
25 Years
37 Years
57 Years
Operation & Maintenance
Industry Standard: $8.4M
3
11.A.1
Packet Pg. 202 Attachment: Stormwater Utility Update 02-26-19 revised 2 (8081 : Stormwater Utility Funding)
Future Stormwater Maintenance Projects
´County-wide Vacuuming Program
´County-wide Street Sweeping Program
´County-wide Swale Maintenance Program:
´Including potential outsourcing to increase capacity
´Re-Establishment of the Desoto Ditch
´Establishment of Logan/Vineyards Ditch
´Waterway Inspection/Maintenance program
´Establishment of a Silt Removal/Dredging Program
The County currently has over $160M in backlogged stormwater projects.
Over $2M spent last year on Golden Gate Estates for O&M prior to Hurricane Irma.
4
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Packet Pg. 203 Attachment: Stormwater Utility Update 02-26-19 revised 2 (8081 : Stormwater Utility Funding)
Stormwater Maintenance Comparison
687
193
375388
69
272
ROADSIDE SWALES (MILES)MAJOR STORMWATER OUTFALLS MS4 PIPES (MILES)
Collier County Sarasota County
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Packet Pg. 204 Attachment: Stormwater Utility Update 02-26-19 revised 2 (8081 : Stormwater Utility Funding)
Personnel Comparison
23
80
0
10
20
30
40
50
60
70
80
90
Stormwater Personnel
Collier County Sarasota County
11.A.1
Packet Pg. 205 Attachment: Stormwater Utility Update 02-26-19 revised 2 (8081 : Stormwater Utility Funding)
Potential Options
v September 6, 2018 BCC Presentation (Full Fee)
v Limited Fee for Maintenance
v Ad Valorem
v Franchise Fee
7
11.A.1
Packet Pg. 206 Attachment: Stormwater Utility Update 02-26-19 revised 2 (8081 : Stormwater Utility Funding)
Limited Fee
§Single fee for condo units
§Single fee for residential parcels
§Commercial parcels:
§ERU based, tiered, with Maximum Cap number of ERUs
§Revenues generated applied to Operations & Maintenance
§Capital Projects would require funding from Property Taxes
§Bondable Instrument
§Continues to rely on impervious area calculations
§Legally defensible
§Assumes current Ad Valorem participation unchanged
8
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Packet Pg. 207 Attachment: Stormwater Utility Update 02-26-19 revised 2 (8081 : Stormwater Utility Funding)
Residential Limited Fee
§Single fee for Residential Parcels in order to generate revenue for
Operation & Maintenance
Number of Parcels Annual Monthly/Parcel
83,265 $60 -$75 $5.00 -$6.25
9
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Packet Pg. 208 Attachment: Stormwater Utility Update 02-26-19 revised 2 (8081 : Stormwater Utility Funding)
Residential Limited Fee
§Large Single Family Home
§6,504 Sq. Ft. /Guest House/Pool
§Taxable Value of $1,379,570
§$5.00 -$6.25 /Month
10
§Average Single Family Home
§2,816 Sq. Ft. /Guest House/Pool
§Taxable Value of $364,570
§$5.00 -$6.25 /Month
§Smaller Single Family Home
§1,516 Sq. Ft.
§Taxable Value of $192,314
§$5.00 -$6.25 /Month
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Packet Pg. 209 Attachment: Stormwater Utility Update 02-26-19 revised 2 (8081 : Stormwater Utility Funding)
Condo Units Limited Fee
§Single fee for condo units in order to generate revenue for
Operation & Maintenance
Number of Units Annual Monthly/Unit
65,366 $39-$51 $3.25 -$4.25
11
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Packet Pg. 210 Attachment: Stormwater Utility Update 02-26-19 revised 2 (8081 : Stormwater Utility Funding)
Condo Limited Fee
§Large Condo
§3,000 Sq. Ft.
§Taxable Value of $579,570
§$3.25 -$4.25/Month
12
§Mid Size Condo
§2,000 Sq. Ft.
§Taxable Value of $364,570
§$3.25 -$4.25/Month
§Smaller Condo
§1,000 Sq. Ft.
§Taxable Value of $192,314
§$3.25 -$4.25/Month
11.A.1
Packet Pg. 211 Attachment: Stormwater Utility Update 02-26-19 revised 2 (8081 : Stormwater Utility Funding)
Commercial Limited Fee
§Commercial fee in order to generate revenue for Operation &
Maintenance
§Based on individual impervious area with maximum of 10 ERUs
§Tier System
Type Number of
Parcels
Annual Monthly/Parcel
Commercial 5,595 $60 -$1,200 $5 -$100
13
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Packet Pg. 212 Attachment: Stormwater Utility Update 02-26-19 revised 2 (8081 : Stormwater Utility Funding)
Property Taxes
§Increasing the current millage to meet the needs of stormwater
§Dedicating up to .15 mils +/-$13M
14
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Packet Pg. 213 Attachment: Stormwater Utility Update 02-26-19 revised 2 (8081 : Stormwater Utility Funding)
Franchise Fee
15
§1% of an electric bill
§Average Collier County Residential Property (150,000):
§$123/month = $1.23 increase in bill
§Generates: +/-$2.5M
§Average Collier County Commercial Property (10,000):
§$639/month = $6.39 increase in bill
§Generates: +/-$750K
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Packet Pg. 214 Attachment: Stormwater Utility Update 02-26-19 revised 2 (8081 : Stormwater Utility Funding)
Productivity Committee Recommendations
Recommendation:
v Dedicate a .15 mils equivalent for the Fiscal Year 2020 and
allow the Productivity Committee to continue to work toward
developing/refining a Stormwater Utility for Fiscal Year 2021,
including a review of the full Fiscal Year 2019 Budget
Other Considerations:
v Implement a Franchise Fee at approximately 5.9%,
specifically for stormwater maintenance, Capital Projects
would require funding from Property Taxes/Other Sources
v Implement the Limited Fee, as presented
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Packet Pg. 215 Attachment: Stormwater Utility Update 02-26-19 revised 2 (8081 : Stormwater Utility Funding)
Staff
Recommendation
´Move forward with implementing a
Limited Stormwater Utility Fee, with fee
ranges not to exceed those detailed, to
fund Operations and Maintenance of the
County’s Stormwater Management
System, for future consideration by the
Board of County Commissioners.
11.A.1
Packet Pg. 216 Attachment: Stormwater Utility Update 02-26-19 revised 2 (8081 : Stormwater Utility Funding)