Embracing Stormwater: Overcoming the Challenges to Benefit Residents, the Municipality, and an Authority s Own Operations

Transcription

1 Embracing Stormwater: Overcoming the Challenges to Benefit Residents, the Municipality, and an Authority s Own Operations Mike Callahan Stormwater Program Coordinator Wayne Schutz DTMA Executive Director

2 Why Authorities Are Asked to Handle Stormwater

3 Why Authorities Are Asked to Handle Stormwater

4 Why Authorities Are Asked to Handle Stormwater Municipalities are facing many stormwater related challenges Tightening regulations Aging infrastructure Increased development Level funding Authorities provide: Financial, administrative, and jurisdictional benefits A steady and dedicated revenue source A more equitable means of allocating growing costs of stormwater management

5 Derry Township Municipal Authority (DTMA) Formed in Member Board Two (2) Township Board of Supervisor Members since the late 1990 s Very good working relationship with Township Board of Supervisors and Staff SALDO Review Financing (bond guarantee) Mutual Aid

6 Derry Township Stormwater Partnerships Derry Township Municipal Authority Stakeholder Advisory Committee Derry Township Township Board of Supervisors recognized the need to develop a new model comprehensive Stormwater Management Program (SMP) for the Township Meeting held between Board of Supervisors, DTMA, and both staffs for 3-4 months to discuss pros, cons, and potential hurdles No downside for DTMA All upside for the Township residents Formed Stakeholder Advisory Committee to evaluate program further

7 Charge of the Stakeholder Advisory Committee (SAC) 1) Provide feedback on Stormwater Management Program: Needs and level of service Spending priorities 2) Evaluate: Proposed Stormwater Program Fee (SPF) structure and Implementation Appeal Process and Credit Policy 3) Engage and educate the public on DTMA s Stormwater Management Program

8 Benefits of DTMA Stormwater Management Authority Advantages Able to implement a Fee Customers include not-for-profit & tax exempt (Churches, et.al.) Including Township, Authority, and School District Facilities Billing System in place Stormwater Program Coordinator Collection System Field Staff

9 DTMA Stormwater Management Authority Challenges Start-up Financing Bond Counsel Review Restrictive Trust Indenture Unique Solution Non Sewer revenue (Septage) Funds Authority Disadvantages New Billing Software Current system custom designed Very inflexible Tech assistance unavailable Data (Impervious Area Data Acquisition & Analyses) Create Stormwater Division Loan from Sanitary Division

10 Benefits of DTMA Ownership Reasons why DTMA s stormwater program will benefit the Derry Township Community: Focus Funding Maintenance Fairness Long-Term Planning Stormwater Asset Management RESULT = Improved environmental health prolonged life of infrastructure Improved equitable distribution of costs Reduced long term costs

11 Why Implement a Stormwater Program Fee? Provides a dedicated source of funds Funds directed solely to stormwater management Fairly apportions costs to the burden each property contributes to the system Based upon impervious area = contribution to the problem Users pays based upon level of service received Fees can be collected from tax exempt users Credits provided based on level of service received Provides an incentive to reduce impervious surface

12 Why is Dedicated Funding Needed? Meet increasing regulatory requirements Effectively handle and manage stormwater runoff Assess stormwater and flooding problems Cost effectively maintain aging stormwater infrastructure Prioritize and strategically implement capital improvements Overcome restrictions of level funding

13 Technical Process for Transferring the Stormwater Program Stormwater Management Program Review Stormwater Infrastructure Review Stormwater Problem Identification Regulatory Requirement Determination Review of Desired Levels of Service Cost of Service Review Impervious Area Analysis Public Outreach and Education Evaluation of Rate Structures/Fee Development Evaluation and Recommendation for an Appeals Process / Credit Policy Development Billing and Database Options Review Stormwater Fee Ordinance Adoption

14 Infrastructure Review / Identified Needs $27,000,000 in needed improvements identified through planning documents Condition Assessment and priority planning ~ $0.5M Partnership with USACE (50/50 cost share) Mapping/Condition Assessment of Infrastructure (years ) Impervious Surface Development in GIS Flood Modeling Flood Emergency Access Study Replacement of failed infrastructure ~ $11M Significant portion of pipe and facilities anticipated to reach its useful life over next years System improvements and new green infrastructure / stormwater best management practices (BMPs) to address flooding ~ $15.5M

15 Program Level of Service

16 DTMA Stormwater Program Operation Manage stormwater system Comply with federal/state regulations/permit requirements Administer Stormwater Program Fee Maintenance Maintain facilities owned by DTMA: pipes, inlets, basins, ditches, best management practices, etc. Complete condition assessment and priority planning Ensure private facilities are properly maintained and operational Capital Improvements Address aging infrastructure needs Minimize flooding/address water quality issues

17 Development of Impervious Area Estimates Hybrid approach used to reduce start-up costs: Representative sampling of residential properties Impervious Area taken from Land Development plans filed with Township Questionnaires to large property owners Remaining properties over 0.5 acre IA digitized from controlled aerial imagery Remaining properties under 0.5 acres, IA estimated thru statistical analysis Appeals process implemented May refine estimates in the future as better data is acquired

18 Start-up Stormwater Goals 1. Team with Stormwater SAC 2. Expand purpose and powers of the Authority to include stormwater management 3. Determine appropriate level of service for Stormwater Authority 4. Define Stormwater Program and Policies 5. Establish equitable fee structure 6. Increase public education on effective Stormwater Management, costs, and fees

19 Example Implementation Steps & Timeline Fall 2016 Develop DTMA Stormwater Rates, Rules, and Regulations Billing System Updates Develop Credit Policy Execute Management and Services Agreement with Township January 1, 2017 Transfer MS4 Permit Transfer Stormwater Assets Implement Stormwater Fee January - April 2017 Finalize Credit Policy Implement Credit Policy Begin Preparation of NOI and Pollution Reduction Plan for 2018 Permit

20 Time to Look at Some Numbers

21 Stormwater Fee & ERU ERU DTMA Board approved resolution on ERU Sets 1 ERU = 3,800 sq. ft. Sets 5 Tier Residential Structure Non-residential will be calculated by dividing IA by 3,800 sq. ft. Stormwater Fee DTMA Board approved resolution on Stormwater Fee Sets Fee at $6.50/ERU/Month First Bill January 2017

22 Projected Budget and Fee Calculation

23 Single-Family Residential Approved ERU Tiers ERU = 3,800 sq. ft. of Impervious Area Tier Impervious Area (sq. ft.) Billed ERUs Number of Parcels 1 < , , ,000 4, , ,000 7, ,600 Per ERU 173 Total Single-Family Residential Parcels: 6,904

24 Total Township Impervious Area & ERUs Total Township Impervious Area (sq. ft.) 1. Single-Family Residential 26,776, Multi-Family Residential 2,655, Commercial/Industrial 27,860, Non-Profit/Tax Exempt 21,544, Parks & Recreation 12,064, Vacant/Unknown/Public Utility 4,610, Agriculture 2,400,300 Total Township Impervious Area (sq. ft.): 97,911,471 Total Township ERUs: 25,766

25 ERU Adjustments Projected Actual Total ERUs: 25,766 25,766 (22,864) Appeal 7.5% (1,932) (3,222) = 12.5% Approved 22.8% (5,874) (1,009) = 3.9% Billable ERUs: 17,960 21,499 Delinquencies (515) = 2.9% (1,157) = 5.4% Collected ERUs: 17,444 20,342 First Year Revenue: $1,360,630 $1,717,980* * Estimated based on first 10 months

26 Accounts versus ERUs Number of Accounts Number of ERUs 11% 27% 89% 73% Residential Non-Residential Residential Non-Residential

27 Breakdown of Stormwater Accounts 9% 7% Storm with Sanitary Storm Only 84% Landlord Storm

28 Breakdown of ERUs 70% 60% 50% 40% 30% 20% 10% 34% 41% 50% 20% 66% 0% Top 10 Parcels Top 20 Parcels Top 50 Parcels 1 ERU or less 1 ERU or less Percent of total ERUs Percent of Total Accounts

29 What to Expect When you charge someone a fee, you will hear from them more. They ll expect some results. Although your Storm Authority is new, the community needs it was formed to address are not. Customers expect customer service. You re going to be front-loaded with a big To-Do list.

30 What to Expect Your existing staff might have some apprehensions. You re going to get asked questions on potentially unfamiliar topics. Think about the front lines here too! Be prepared to buy additional equipment. Adding stormwater may prompt other organizational changes Billing/Asset management software Additional staffing Changes in billing procedures / More time needed to process billing No matter how much you plan, you won t think of everything. Be Flexible!

31 Aging Infrastructure

32 Is the Sum of the Parts Greater than the Whole?

33 Watershed-scale Issues

34 Big Storms

35 Continual Maintenance

36 The Second Thought Infrastructure

37 Emergency Repairs

38 Emergency Repairs

39 Set It and Forget It

40 Concluding Remarks Critically evaluate the make up of your community along with the strengths and weaknesses of the municipality and authority. Get input from others Can t stress importance of SAC enough! Don t be afraid to tackle challenges. Embrace the challenges.

41 Thank you for attending! For more information visit: Contact: Mike Callahan DTMA Stormwater Program Coordinator Embracing Stormwater: Overcoming the Challenges to Benefit Residents, the Municipality, and an Authority s Own Operations